Consider the case of Blanche Inc.:

1) Blanche Inc. 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 $950.35. However, Blanche Inc. 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 Blanche Inc.s bonds?

	Value
YTM
YTC

2) If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Blanche Inc.s bonds?

13 years

8 years

10 years

18 years

3) If Blanche Inc. issued new bonds today, what coupon rate must the bonds have to be issued at par?