Microsoft issued bonds for the first time in 2009. Collect information on its bonds: What are the coupon rates, are there are any special provisions such as callability or convertibility, what is the...

Microsoft issued bonds for the first time in##########Collect information on its bonds: What are the
coupon rates, are there are any special provisions such as callability or convertibility, what is the
maturity, and what are the yields? Discuss why Microsoft issued these bonds despite a large amount of
cash holdings. Apple has not issued any bonds to date. Can you compare this with Microsoft and discuss
why?
Ans.
Microsoft had issued bonds for the first time in May 2009 of total value of $3.75 Billion and having the
following maturity periods and coupon rates respectively:
 2.95% notes due on 1st June, 2014 of value $2.00 Billion
 4.20% notes due on 1st June, 2019 of value $1.00 Billion
 5.20% notes due on 1st June, 2039 of value $0.75 Billion
The yield on the above bonds having different maturities is as...