# You are given the following data on bonds from AT&T, Dell, and IBM. Each bond has a par value of \$1000.

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You are given the following data on bonds from  AT&T, Dell, and IBM. Each bond has a par value of \$1000.

 AT&T Dell IBM Coupon 6.80 6.50 8.375% Maturity 05/15/2036 04/15/2038 11/01/2019 Frequency Semiannual Semiannual Semiannual Rating A A- A+

1. Calculate the value of the bond if your required return is 5 percent on
AT&T, 6.5 percent on Dell, and 8 percent on IBM.
2. Determine the yield to maturity (YTM) on the bonds given the following
prices.

 AT&T Dell IBM Price \$1,060.00 \$1,016.57 \$1,307.78

1. Based on each bond’s ratings and your determination of its yield to maturity
explain how you rank each bond for risk and return.
2. Assume you had \$10,000 to invest.  How many of each bond would you have?
What dollar amount of interest would each bond return on the investment for the
next year? What would your percentage return be for the year, that is, your
interest payments divided by the total amount invested? You must submit your
backup in Excel or other supporting documentation showing how answers were
reached.

#### Week 4 Assignment 3 Final Project

• 8 years ago
Bonds from ATT, Dell, and IBM (***** Correct Solution *****)
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• bonds_from_att_dell_and_ibm__w4a3.docx