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Please solveConsider the following case of Purple Whale Foodstuffs Inc.: Purple Whale Foodstuffs Inc. has 9 % annual coupon bonds that are callable and have

Please solveConsider the following case of Purple Whale Foodstuffs Inc.:
Purple Whale Foodstuffs Inc. has 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 $950.35. However, Purple Whale Foodstuffs Inc. may call the bonds in eight years at a
call price of $1,060.
What are the YTM and yield to call (YTC) on bonds?
Purple Whale Foodstuffs Inc.'s bonds have a yield-to-maturity (YTM) of
and a yield-to-call (YTC) of
If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Purple Whale Foodstuffs Inc.'s bonds?
18 years
8 years
13 years
10 years
If Purple Whale Foodstuffs Inc. issued new bonds today, what coupon rate must the bonds have to be issued at par?
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