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General Motors (GM) issues 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of

General Motors (GM) issues 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 $1,190.35. However, General Motors may call the bonds in eight years at a call price of $1,060. If interest rates are expected to remain constant, what is the best estimate of the remaining life left for General Motors bonds? (hint: will the bonds be called?)

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