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 5 percent on AT&T, 6.5 percent on Dell, and 8 percent on IBM.
2. Determine the yield to maturity (YTM) on the bonds given the following prices.

AT&T 
Dell 
IBM 
Price 
$1,060.00 
$1,016.57 
$1,307.78 
3. Based on each bond’s ratings and your determination of its yield to maturity explain how you rank each bond for risk and return.