8-Below is the listing of a bond issued by Verizon Communications Inc. Below the detail of the bond is the information on a recent sale of part of the bond issue.

Explain what the price of $103.955 means in this purchase.

Explain how the yield to maturity of 5.24% is calculated.

Contrast that with the calculation of the current yield of 5.291%.

Explain why it matters to know if the bond pays interest monthly, semi-annually or annually.

This bond does not mature for more than 30 and six months. Explain the concept of interest rate risk in context with this bond for both the issuer and the investor.

Rating Issuer CUSIP Coupon Maturity Price Yield to Maturity

A Fitch Verizon 5.500% 12/15/47 103.955 5.240%

Communication Inc.

Current Yield Dated Minimun Size Coupon Paid Callable

5.291% 02/22/12 3K Semi-Annual No