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 $1,220.35. However, Blue Pencil Publishing may call the bonds in eight years at a call price of $1,060.

Blue Pencil Publishings 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 Publishings bonds? 18 years 13 years 5 years 8 years

If Blue Pencil Publishing issued new bonds today, what coupon rate must the bonds have to be issued at par?