In: Finance
Lourdes Corporation's 12% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 30 years, are callable 4 years from today at $1,075. They sell at a price of $1,252.76, and the yield curve is flat. Assume that interest rates are expected to remain at their current level.
What is the best estimate of these bonds' remaining life? Round your answer to the nearest whole number._____years
If Lourdes 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?
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