Consider the following case of Blue Moose Home Builders Inc.:

Blue Moose Home Builders Inc. has $9\%$ annual coupon bonds that are callable and have $18$ years left until maturity. The bonds have a

par value of $$1,000,$ and their current market price is $$1,190\mathrm{.}35.$ However, Blue Moose Home Builders Inc. may call the bonds in eight

years at a call price of $$1,060.$

Blue Moose Home Builders Inc.$\text{'}$s bonds have a yield$-$to$-$maturity $($YTM$)$ of

and a yield$-$to$-$call $($YTC$)$ of

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

$5$ years

$10$ years

$18$ years

$8$ years

If Blue Moose Home Builders Inc. issued new bonds today, what coupon rate must the bonds have to be issued at pari