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Blue Pencil Publishing has 9 % annual coupon bonds that are callable and have 1 8 years left until maturity. The bonds have a par
Blue Pencil Publishing has annual coupon bonds that are callable and have years left until maturity. The bonds have a par value of $ and their current market price is $ However, Blue Pencil Publishing may call the bonds in eight years at a call price of $
Blue Pencil Publishings bonds have a yieldtomaturity YTM of and a yieldtocall YTC of
If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Blue Pencil Publishings bonds?
years
years
years
years
If Blue Pencil Publishing issued new bonds today, what coupon rate must the bonds have to be issued at par?
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