Lourdes Corporation's 11% coupon rate, semiannuat payment, $1,000 par value bonds, which mature in 25 years, are callable 5 years from today at $1,050. They aell at a price of. \$1,228.89, and the yleld curve is flat. Assume that interest rates are expected to remain at their current level: a. What is the best estimate of these bonds' remaining life? Round your answer to the nearest whole number: years b. If Lourdes plans to raise addational capitai and wants to use dobt financing. what coupon rate would it have to set in order to issue new bonds at par? 1. Since interest rates have risen since the bond was first lisued, the coupon rate should be set at a rate above the current coupon rate. I1. Since the bonds are selling at a premium, the coupon rate should be set at the going rate, which is the rre. III. Since the bonds are selling at a premtum, the coupon rate should be set at the golng rate, which is the rTm. TV. Since tourdes wishps to issue new bonds at par value, the coupon rate should be set the same as that on the existing bondr. 4. Since Courdes wishes to lssue new bonds at par value, the coupon rate should be set the same as the current rield on the exasing bends