AT&T Dell IBM Coupon 6.80 6.50 8.375% Maturity 05/15/2036 04/15/2038 11/01/2019

Question

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+


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.
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


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

Explanation / Answer

It is understandable that money can make us autonomous. But what to do when one doesn't have cash? The one way only is to get the business loans or just secured loan.

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