please do parts 1-4

With $30 billion in cash and cash equivalent and $31.5 billion in liquid marketable securities, Apple nevertheless decided to borrow money through bond issuance in 2023. Why would Apple borrow money despite sizable liquid assets under its belt ? On May 8, 2023 Apple issued international bonds (US037833ES58) with the coupon rate of 4.421% in the amount of USD 1000 min maturing in 2026 . The issues were sold at the price of 100% at par. The bookrunners of the placement were Goldman Sachs, Barclays, JP Morgan, BofA Securities, Deutsche Bank, Morgan Stanley. Tech giant takes advantage of its low premiums to bolster its cash flow, fund share buybacks, pay dividends. Another very good reason for Apple to continue borrowing is that issuing debt remains cheaper than bringing back home all the money that the company keeps in its international reserves. As remember, the minute Apple bring cash earned for example in China, that minute Apple would pay hefty corporate tax rate. Since most credit rating agencies rated Apple credit as AAA, bond interest was favorable. For people, the better their credit score the smaller percent he/she could enjoy, same thing apply to the companies, the better the credit rating, the smaller interest rates the company would pay. Bonds issued had different types of maturities, in third quarter of 2023 debt issued by Apple was equal to $5.25 bln with fixed rate 4.0%4.85% and 20262053 maturity. Questions 1. (1 noint) What iournal entrv did Anole make when it issued $5.25 billion in bonds (ianore underwriting feesi? 2. ( 0.5 point) How was accounting equation impacted by the bond issuance? a. Assets increased, liabilities increased, equity unaffected. b. Assets increased, liabilities increased, equity increased. c. Assets increased, liabilities increased, equity decreased. d. Assets decreased, liabilities increased, equity unaffected 3. (1 point) The effective interest rate for bond issuance ( $5.25bln ) in third quarter 2023 was 4.421%. How much will it cost Apple to serve its new debt annually (e.g. in 2024)? Put it differently, what is an interest expense related to the mentioned bond issuance that will be recorded in 2024 ? a. \$232.1 million b. $23.21 million c. $52.5 million d. \$2,32 billion 4. (0.5 point) What is the reason (s) Apple issued bonds instead of borrowing money from the bank? If you did not make relevant notes, you may find this summary helpful a. Bonds generally yield smaller interest rates b. Bank loans are more restrictive as banks may set up covenants. c. Bond issuance enables corporations to attract a large number of lenders: banks, insurance companies, pension funds etc. d. Company controls many options about bonds: maturity, ability to convert bonds into stocks: e. All of the above are correct