6. Six Flags 5-year bonds offer 4.9% yield to maturity to investors. Springfield, MA municipal 5-year bonds offer 3.8% yield to maturity to investors. Both bonds are rated at B. If your personal income tax rate is 25%, which one is the better investment opportunity?

7. You are doing analysis for one bond of AOL Time Warner. On Wall Street Journal, the last trading price is quoted as 106.57. What is the exact price of this bond? The maturity date is March 2030. The current yield is 7.5%. What is the coupon rate?

8. GE bond has a current yield of 9%, yield to maturity 10%, and a coupon rate of 8%. What is the bond price?