In Figure 3.1, locate the AT&T bond that matures in the year 2000. What is the coupon rate on this issue? Suppose you purchase $100,000 in face value. How much will this cost? Assuming semiannual payments, what will you receive in coupon payments? Verify the reported current yield.

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Figure 3.1. NYSE Bond Trading NEW YORK EXCHANGE BONDS Quotations as of 4 p.m. Eastern Time Tuesday, September 22, 1998 CORPORATION BONDS Bonds ATT 4399 ATT 6s00 ATT 501 ATT 7802 ATT 63404 ATT 7s05 Cur Yld. Vol, Close Net Chg. 4.4 6 995/32 + 7/33 6.0 67 100% - - 5.2 58 99% 6.8 55 10434 6.3 40 1062 - 6.5 146 1074 + : ATT 8.2505 7.9 20 103% - ATT 707 6.9 25 113 ATT 8822 7.5 28 108 ATT 824 ATT 8531 7.5 45 108% + 7.7 16 112 +++ Va