1. Today, you bought a 5-year bond issued at par. The bond has par value of THB 1,000 and coupon rate of 6%, payable annually. One year later, the yield to maturity on the bond is 5% and you decide to sell the bond. What is the IRR on your cash flows?
2. Can a risky company issue a safe bond?
3. Six Flags has stock that currently sells for $24 per share. The interest rate is 4%. what is the preferred dividend that Six Flags stocks pays outs per year?