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Help please, thanks so much. Lourdes Corporation's 14% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 10 years, are callable 3 years

image text in transcribedHelp please, thanks so much.
Lourdes Corporation's 14% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 10 years, are callable 3 years from today at $1,050. They sell at a price of $1,245.27, and the yield curve is flat. Assume that interest rates are expected to remain at their current level What is the best estimate of these bonds' remaining life? Round your answer to two decimal places. a. b. IfLourdes plans to raise additional capital and wants to use debt financing, what coupon rate would it have to set in order to issue new bonds at par? I. Since Lourdes wishes to issue new bonds at par value, the coupon rate set I. Since interest rates have risen since the bond was first issued, the coupon III. Since the bonds are selling at a premium, the coupon rate should be set at IV. Since the bonds are selling at a premium, the coupon rate should be set at V. Since Lourdes wishes to issue new bonds at par value, the coupon rate set should be the same as the current yield on the existing bonds. rate should be set at a rate above the current coupon rate the going rate, which is the YTC. the going rate, which is the YTM. should be the same as that on the existing bonds. One-year Treasury securities yield 3.8%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 5.55%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities

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