Below is the listing of a bond issued by International Business Machines Corporation (IBM). Below the detail of the bond is the information on a recent sale of part of the bond issue. Explain what the price of $148.850 on a $100 par value bond means in this purchase. Explain how the yield to maturity of 4.058% is calculated. Contrast that with the calculation of the current yield of 4.703%. Explain why it matters to know if the bond pays interest monthly, semi-annually or annually. This bond does not mature for almost 28 years. 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 A1 – Moody’s International Business 7.000% 10/30/2045 $148.850 4.058% Machines Corp (IBM) Current Yield Dated Minimun Size Coupon Pd Callable 4.703% 04/30/1996 5K Semi-Annual No