Problem:7-147 Expected Interest Rate: Loyd Corporation's:14% coupon rate, semiannual payment, $1000 par value-bonds, which mature-in-30-years, are callable 5 years from today at $1,050. They sell at-a- price of $1,353.54, and the yield-curve is flat. Assume that interest rates are expected to remain at their current level.1 a. What is the best-estimate of these bond's remaining life?1 b. If-Lloyd 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?4 Solution