About the Download

You must submit your backup in Excel.
Given the following data on bonds from AT&T, Dell, and IBM, with each bond having 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
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.
4.            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.

Save For Later

has been added to your cart!

have been added to your cart!

You must log in and be a buyer of this download to submit a review.