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 4%. Please answer the following questions: poon 1. Please calculate the value of the bond. n - so UB=So 3 (170.09) + looo elito.04 )} 004 2. Please calculate the duration of the bond, using the following table: PV Weight (w) txw Time (D) 1 2 3 Cash flow 50 So loso 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. 6