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Demed Inc. has 9 % annual coupon bonds that are callable and have 1 8 years left until maturity. The bonds have a par value
Demed Inc. has annual coupon bonds that are callable and have years left until maturity. The bonds have a par value of $ and their current market price is $ However, Demed Inc. may call the bonds in eight years at a call price of $ What are the YTM and the yield to call YTC on Demed Inc.s bonds?
Value
YTM
YTC
If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Demed Inc.s bonds?
years
years
years
years
If Demed Inc. issued new bonds today, what coupon rate must the bonds have to be issued at par?
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