Badger Corp. 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 $1,100.35. However,
Badger Corp. may call the bonds in eight years at a call price of
$1,060. What are the YTM and the yield to call (YTC) on Badger
Corp.’s bonds?
If interest rates are expected to remain constant, what is the
best estimate of the remaining life left...