Team A:

Given potential allegations of greenwashing, what specific questions should Jackson expect? How should she respond to these questions?

Team B:

Assuming the new green bond is a conventional bond, what is your best estimate of its yield? As per the case, you would need to account for the yield curve and credit quality effects. You can determine the yield in at least two ways:

$$ Use the Apple bonds outstanding and create the yield curve for Apple bonds from the case data. Contrast them with the yield curve on US government bonds.

$$ Use the data on bonds of companies similar to Apple.

Whichever way you choose, make sure to justify your approach!

Team C:

What is your best estimate of the greenium for the new bond? The greenium should be an adjustment to the yield $($not the price$)$ you determined in the previous step $($see the question for Team B$).$ Provide an estimate of a reasonable range for the greenium, by specifying the low bound and the high bound for the greenium.

Team D:

By how much has Apple increased its debt financing? Is Apple at risk of having its credit rating downgraded? Use the following two ratios to describe Apple's debt levels:

$$ EBIT$-$to$-$interest$-$expense

$$ Debt$-$to$-$EBITDA

N$.$B$.$ For the calculation of the above two ratios consider the following. Other long$-$term liabilities are not considered to be debt. Interest expense is only the interest paid; ignore interest and dividend income. Use the book value of debt.