1. What are some ways Apple can maximize their shareholders value?
2. Suppose that a 16-year bond with a face value of 2500 dollars is redeemable at par and pays semiannual coupons that increase by 1.6 percent per coupon. If the last coupon is for 80 dollars and the yield rate is 7.1 percent convertible semiannually, what is the book value of the bond immediately after the 12th coupon is paid?
3. What is the value of the fixed payer position in an existing CDS with 2 years to maturity and a spread of 2.5%, if new 2-year CDS are trading at a spread of 1.5%. Assume the appropriate discount rate is 6%, CDS payments are made annually, and the notional principal is $100.