Consider the case of Badger Corp.:

Badger Corp. 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 $$1,220\mathrm{.}35.$ However, Badger Corp. may call the bonds in eight years at a call price of $$1,060.$ What are the YTM and the yield

to call $($YTC$)$ on Badger Corp.$\text{'}$s bonds?

Value

YTM

YTC

If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Badger Corp.$\text{'}$s bonds?

$13$ years

$10$ years

$5$ years

$8$ years

If Badger Corp. issued new bonds today, the coupon rate must be

If Badger Corp. issued new bonds today, the coupon rate must be