Apple just completed a large, Swiss Franc denominated bond sale. In the discussi
ID: 2638795 • Letter: A
Question
Apple just completed a large, Swiss Franc denominated bond sale. In the discussion board for this topic, explain why a company that has almost $200 billion in cashwould decide to issue bonds and why they would choose to use Swiss Franc denominated bonds. Microsoft just completed an even larger offering. Reading about their decision might help as well. Use your group discussion board to discuss the issue among your group members and then post one final answer to be graded. Everyone in the group should contribute to the answer.
Explanation / Answer
both the companies are framed good strategies and they implemented it well.
because the swiss frank is the one currency which most volatile in the economic world, and now it is at its lowest levels further collapse wont happen.
the currency has to be strngthen from this point either now or in near by future. so holding the currency is good strategy and whenever they want to convert the caurrency into other, it can easily converts.
and both the firms are looking to estabish their work units in swiss, this is alos one of the reason to hold the currency
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