Assignment: Chapter 06 Bonds (Debt) - Characteristics and Valuation Consider the following case of Blue Pencil Publishing: Blue Pencil Publishing has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,130.35. However, Blue Pencil Publishing may call the bonds in eight years at a call price of $1,060. Blue Pencil Publishing's bonds have a yield-to-maturity (YTM) of and a yield-to-call (YTC) of If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Blue Pencil Publishing's bonds? 13 years 5 years 8 years 18 years If Blue Pencil Publishing issued new bonds today, what coupon rate must the bonds have to be issued at par?