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Consider the case of Eades Corp.: current market price is $1,100.35. However, Eades Corp. may call the bonds in eight years at a call price
Consider the case of Eades Corp.: current market price is $1,100.35. However, Eades 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 Eades Corp.'s bonds? If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Eades Corp.'s bonds? 18 years 5 years 8 years 10 years \begin{tabular}{|l|} \hline 6.91% \\ \hline 7.93% \\ \hline 7.36% \\ \hline 10.46% \\ \hline \end{tabular} If Eades Corp. issued new bonds today, what coupon rate must the bonds have to be issued at par
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