7-14 EXPECTED INTEREST RATE Lloyd Corporations14%couponrate,semiannualpayment,$1,000par value bonds, which mature in 30 years, are callable 5 years from today at $1,050. They sell at aprice of $1,35354, and the yield curve is flat. Assume that interest rates are expected to remain attheir current level.a. What is the best estimate of these bonds remaining life?b. If Lloyd plans to raise additional capital and wants to use debt financing, what couponrate would it have to set in order to issue new bonds at par?