Consider the case of Swing Co$.$:

Swing Co$.$ has $9\%$ annual coupon bonds that are callable and have $18$ years left until maturity. The bonds have a par value of $$1,000,$ and their current market price is $$1,070\mathrm{.}35.$ However, Swing Co$.$ 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 Swing Co$.$s bonds?

Value

YTM

YTC

If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Swing Co$.$s bonds?

$8$ years

$18$ years

$5$ years

$13$ years

If Swing Co$.$ issued new bonds today, what coupon rate must the bonds have to be issued at par?