ATT, Dell, and IBM Bond

Week 4 assignment 3

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

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.

3.

Based on each bond s ratings and your determination of its yield to maturity
explain how you rank each bond for risk and return.

1. 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.