(Answered) Lourdes corporations 10 coupon rate semiannual payment 1000

Finance

Lourdes Corporation's 10% coupon rate, semiannual payment, $1,000 par value bonds, which mature in 25 years, are callable 3 years from today at $1,025. They sell at a price of $1,114.82, 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?

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