Bondyields

Consider the following case of Fuzzy Badger Transport Company:

Fuzzy Badger Transport Company has $9\%$ annual coupon bonds that are callable and have $18$ years left until maturity. The bonds have a

par value of $$1,000,$ and their current market price is $$1,160\mathrm{.}35.$ However, Fuzzy Badger Transport Company may call the bonds in eight

years at a call price of $$1,060.$

Fuzzy Badger Transport Company'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 Fuzzy Badger Transport Company's bonds?

$10$ years

$18$ years

$8$ years

$5$ years

If Fuzzy Badger Transport Company issued new bonds today, what coupon rate must the bonds have to be issued at par?