Look at the terms of the Apple bond issue in Table_14.2 and answer the following questions. a. Does the company have a call option on these bonds? -) Yes O No b. How much interest is paid on each Apple bond in a year? (Round your answer to 2 decimal places.) Interest paid in year c. Can Apple issue secured debt that would come ahead of this issue? O Yes O No d. Does Apple's bond receive Moody's highest credit rating? O Yes TABLE 14.2 Apple's debt issue Comment Description of Bond 1. Interest of 3.45% will be payable on February 9 and August 9 ISSUE: Apple Inc. 3.45% Notes of each year. Thus every 6 months each note will pay Interest of (.0345/2)x $1,000 $17.25 2. Investors will be repald the $1,000 face value In 2045 3. Moody's bond rating is Aa, the second-highest-quality rating 4. A trustee Is appolnted to look after Investors' Interest. DUE: February 9, 2045 RATING: Aa TRUSTEE: Issued under an Indenture between Apple and The Bank of New York Mellon Trust Company REGISTERED: Issued In registered, book-entry form 5. The bonds are reglstered. The reglstrar keeps a record of who 6. The company Is not obliged to repay any of the bonds on a 7. The company has the option to buy back the notes. The owns the bonds. SINKING FUND: None regular basis before maturity. redemption price is the greater of $1,000 or a price that is determined by the value of an equlvalent Treasury bond. 8. The notes are senlor debt, ranklng equally with all Apple's SENIORITY other unsecured senlor debt. SECURITY: The notes are unsecured. However, "if Apple shall Incur, assume or guarantee any Debt,.It wll secure. the debt securitles then outstanding equally and ratably with... such Debt. 9. The notes are not secured; that Is, no assets have been set aslde to protect the noteholders in the event of default. However, If Apple sets aslde assets to protect any other bondholders, the notes will also be secured by these assets. This is termed a negative pledge clause 10. The princlpal amount of the Issue was $2 blilion. The notes OFFERED: $2,000,000,000 at 99.11 were sold at 99.11% of their principal value. 11. The book runners are the managing underwriters to the Issue JOINT BOOK-RUNNING MANAGERS: Goldman, Sachs; Deutsche Bank Securitles and malntaln the book of securitles sold