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 $$1,000,$ and their current market price is $$1,100\mathrm{.}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.$\text{'}$s bonds?

$\backslash$table$[[$Value$],[$YTM$,],[$YTC$,]]$

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

$10$ years

$8$ years

$18$ years

$5$ years

If RTE Inc. issued new bonds today, what coupon rate must the bonds have to be issued at par?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 $$1,000,$ and their current market price is $$1,100\mathrm{.}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.$\text{'}$s bonds?

$\backslash$table$[[$Value$],[$YTM$,],[$YTC$,]]$

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

$10$ years

$8$ years

$18$ years

$5$ years

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