Abstract

In July 2020, Apple Inc. unveiled its goal of achieving 100% carbon neutrality in its entire business, including the manufacturing supply chain and complete product life cycle, by 2030. To achieve its target, the company started issuing Green Bonds. The case talks about the company’s green bond issue and provides the scope to bring in various important dimensions related to the bond issue. It also helps students to learn about the calculation of Current Yield, Yields to Maturity, and Yield to Call using Apple’s green bond issue.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To understand why any company issues green bonds
• To understand the concept of bond and coupon rate
• To understand how to estimate CY and YTC with the help of real data
• To understand how to estimate YTM using various methods

Keywords

Bond; Green Bond; Long-term Bond; Current Yield; Yield to Maturity; YTM; Yield to Call; Long-term source of financing; Trial and Error Method; MS Excel YIELD function