You are given the following data on bonds from AT&T,Dell, and IBM. Each bond has a par value of $1000.

	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+

1. Calculate the value of the bond if your required return is 5percent on AT&T, 6.5 percent on Dell, and 8 percent onIBM.
2. Determine the yield to maturity (YTM) on the bonds given thefollowing prices.

	AT&T	Dell	IBM
Price	$1,060.00	$1,016.57	$1,307.78

3. Based on each bonds ratings and your determination ofits yield to maturity explain how you rank each bond for risk andreturn.
4. Assume you had $10,000 to invest. How many of each bondwould you have? What dollar amount of interest would each bondreturn on the investment for the next year? What would yourpercentage return be for the year, that is, your interest paymentsdivided by the total amount invested?