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…

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?

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *