Shark 3 - Bond Offerings

In which bond scenario would investors receive the highest annual interest payment?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

Considering the interest rate and maturity, which bond scenario would result in the highest total interest paid by the company over the bond's lifetime?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

If an investor is looking for a long-term investment with the lowest annual interest payment, which bond scenario should they choose?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

Which bond scenario offers the tech company the lowest annual interest expense, considering both interest rate and maturity?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

If an investor prefers a short-term investment with the highest interest rate, which bond scenario should they choose?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

Which bond scenario has the longest maturity period?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

In which scenario would the tech company pay the most interest over the entire bond's lifetime?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

Which bond scenario offers the highest interest rate?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

If an investor wants the shortest possible bond duration, which scenario should they choose?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years

Which bond scenario offers the tech company the highest annual interest expense?

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 2.5%

  • Maturity Period: 5 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.0%

  • Maturity Period: 10 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 3.5%

  • Maturity Period: 15 years

• • Bond Principal: $8 billion

  • Interest Rate (Coupon Rate): 4.0%

  • Maturity Period: 20 years