Below is the listing of a bond issued by at& t inc. (t). below the detail of the bond is the information on a recent sale of part of the bond issue. explain what the price of $112.093 on a $100 par value bond means in this purchase. explain how the yield to maturity of 2.946% is calculated. contrast that with the calculation of the current yield of 3.836%. explain why it matters to know if the bond pays interest monthly, semi-annually or annually. this bond does not mature for almost 11 years. explain the concept of interest rate risk in context with this bond for both the issuer and the investor.

Lipman auto parts, a family-owned auto parts store, began january with $10,300.00 in cash. management forecasts that collections from credit customers will be $11,400.00 in january and $14,800.00 in february. the store is scheduled to receive $5,000.00 in cash on a business note receivable in january. projected cash payments include inventory purchases ($13,000.00 in january and $13,600.00 in february) and operating expenses ($2,700.00 each month). lipman auto parts' bank requires a $10,000.00 minimum balance in the store's checking account. at the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. lipman auto parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. the first payment occurs three months after the loan.