Information:

Issue date: June $8,2011$

Amount Issued: $$600$ million

Maturity: June $15,2041$

Denomination, fv$,$ or principal: $$1,000$

Interest: $5\mathrm{.}85\%$ per annum payable June $15$ and December $15$

Offered: Issued at a price of $99\mathrm{.}592\%$ plus accrued interest $($proceeds to company $98\mathrm{.}717\%)$

Joint book$-$running managers: Citi, JPMorgan

Registered: Issued in fully registered form only

Trustee: U$.$S$.$ Bank National Association

Security: Not secured. Company will not permit to have any lien on its property or assets without equally and ratably securing the debt securities$.$

Seniority: Senior notes ranking pari passu with other unsecured unsubordinated debt.

Change of control event: If a change of control occurs and the notes are simultaneously downrated to below investment grade the company will offer to repurchase the notes.

Sinking fund: None.

Callable: At whole or in part at the option of the Company with at least $30$ days, but not more than $60$ days, notice at the greater of $($i$)100\%$ of the principal amount or $($ii$)$ the sum of the scheduled remaining payments discounted at $30$ basis points above the Treasury rate.

Moody$$s rating at issue date A$3$

Questions:

A$)$ What is the percentage underwriting spread?

B$)$ How many dollars does the compay receive for each bond after deduction of the underwriter spread?

C$)$ AMAT decides to call the bond one year before it is due to expire. The interest rate on one$-$year Treasury bonds is $2\%.$ What price must AMAT pay to call the bonds?

D$)$ If the interest rate on Treasury bonds is $10\%.$ What price must AMAT pay to call its bonds? $($Hint: AMAT will pay greater value between par face value and PV of remaining payments$)$