- How much interest is paid on each Apple bond in a year? (Round answer to 2 decimal places)

TABI E 14.2 Apple's debt issue Comment Description of Bond ISSUE Apple Inc. 345% Notes 1. Interest of 3.45% will be payable on February 9 and August 9 $17.25. 3. Moody's bond rating is Aa, the second-highest-quality rating. of each year. Thus every 6 months each note will pay Interest of (0345/2) $1,000 2. Investors will be repaid the $1,000 face value In 2045. DUE: February 9, 2045 RATING: Aa TRUSTEE: Issued under an indenture between Apple and The Bank of New York Mellon Trust Company 4. A trustee is appolnted to look after investors Interest 5. The bonds are registered. The registrar keeps a record of who REGISTERED: Issued Iin registered, book-entry form owns the bonds. 6. The company is not obliged to repay any of the bonds on a SINKING FUND: None regular basis before maturity 7. The company has the option to buy back the notes. The CALLABLE: In whole or in part at any time redemption price is the greater of $1,000 or a pice that is determined by the value of an equivalent Treasury bond. 8. The notes are senlor debt, ranking equaly with all Apple's SENIORITY other unsecured senior debt. 9. The notes are not secured; that Is, no assets have been set aside to protect the noteholders in the event of default However, it Apple sets aside assets to protect any other SECURITY; The notes are unsecured. However, "If Apple shall Incur, assume or guarantee any Debt,...t wil secure the debt securities then outstanding equally bondholders, the notes will also be secured by these assets and ratably with... such Debt" This is termed a negative pledge clouse of the issue was $2 DEon. The notes OFFERED: $2,000,000,000 at 99.11% were sold at 99.1 1% of their principal value. JOINT BOOK-RUNNING MANAGERS: Goldman, Sachs Deutsche Bank Securities 11. The book runners are the managing underwriters to the issue and maintain the book of securities sold