Lourdes Corporation's 13th coupon rate, semiannual payment, 11,000 par value bende, which mature in 25 years, are calloble 5 years from today at $1,075. They ael at a price of 11,316:96, shd the yleld curyen is flet. Assume that interest rates are expected to remain at thet 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 raye additiorul capsal and wants to use debt financing, what coupon rate would is have to set in order to issue new bonds at par? 1. Since the bonds afe selling at a premium, the coupon rate should be set at the going rate, which is the YTM. 1I. Since Lourdes wishes to lasue new bonids at par value, the coupon rate thould be set the same as that on the existing bonds. III. Sthce Lourdes wishes to lasue new bonds at par value, the coupon rate should be set the same as the current yield on the oxiting bonds. IV. Since interest rates have risen since the bond was first ispued, the coupon rate should be set at a rate above the current coubon rate. V, since the bonds are selkng at a premium, the coupon rate shouid be set at the going rate, which is the YTC