will be nowy. Swedry mary Serendipity On Me prou V. Bonds (20 points) Apple Inc. has just issued a new bond with 3-year maturity, 5% stated coupon rate (paid once a year) and $1,000 face value. The required rate of return of the bond is 496. Please answer the following questions: 1. Please calculate the value of the bond. CP= 1,00085% : 490 n=73 PU=1,000 -so UB=So 3. (ito.09) + looo 004 allto-04)3 2. Please calculate the duration of the bond, using the following table: 1000/170048) txw Weight (w) Time (t) 1 2 3 Cash flow PV 50 50 1050 Total 3. If investors' required rate of return increases by 25 basis points, how much will the bond price change, using the duration concept? 4. If the Standard & Poor's, a credit rating agency, suddenly upgrades Apple's credit rating, what will happen to its bond price? Please explain