Explain how you rank each bond for risk and return

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Reference no: EM13198101

Research Market Data on Bonds

Research the current (within the last two months) market data on bonds from AT&T, Dell, and IBM. Assume each bond has a par value of $1000, unless otherwise indicated. Cite your sources.


AT&T

Dell

IBM

Coupon




Maturity




Frequency




Rating




Required:

1. Complete the table above.

2. Calculate the value of the bond if your required return is 5% on AT&T, 6.5% on Dell, and 8% on IBM.

3. Determine the yield to maturity (YTM) on the bonds given the current price. Based on each bond's ratings and your determination of its yield to maturity, explain how you rank each bond for risk and return.

Reference no: EM13198101

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