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Consider the following case of Grey Fox Aviation Company: Grey Fox Aviation Company has 9% annual coupon bonds that are callable and have 18 years

image text in transcribed Consider the following case of Grey Fox Aviation Company: Grey Fox Aviation Company 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 $980.35. However, Grey Fox Aviation Company may call the bonds in eight years at a call price of $1,060. Grey Fox Aviation Company'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 Grey Fox Aviation Company's bonds? 8 years 10 years 5 years 18 years If Grey Fox Aviation Company issued new bonds today, what coupon rate must the bonds have to be issued at par

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