Consider the following case of Blue Pencil Publishing:

Blue Pencil Publishing 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 Pencil Publishing may call the bonds in eight years at a call price

of $$1,060.$

Blue Pencil Publishing'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 Pencil Publishing's bonds?

$18$ years

$13$ years

$5$ years

$8$ years

If Blue Pencil Publishing issued new bonds today, what coupon rate must the bonds have to be issued at par?