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Consider the case of RTE Inc.: RTE Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds

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Consider the case of RTE Inc.: RTE 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 $1,010.35. However, RTE 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 RTE Inc.'s bonds? Value YTM YTC If interest rates are expected to remain constant, what is the best estimate of the remaining life left for RTE Inc.'s bonds? 13 years O 8 years 10 years 18 years If RTE Inc. issued new bonds today, what coupon rate must the bonds have to be issued at par?, Grade It Now Save & Continue Continue without saving

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