Swing Co. 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 $980.35. However, Swing Co. may call the bonds in seven years. The call premium is $70. What are the YTM and the yield to call (YTC) on Swing Co.'s bonds?

Value

YTM

YTC

If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Swing Co.'s bonds? Explain.