Problem:
Eades has 9% annual coupon bonds that are callable and have 18years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,220.35. However, Eades may call the bonds in eight years at a call price of $1,060.
Required;
Question 1: What are the YTM and yield to call on Eades Corp. Bonds?
Question 2: If the interest rates are expected to remain constant, what is the best estimate of the remaining life left for Eades Corp?
Question 3: If Eades issued new bonds today, what coupon rate must the bonds have to be issued at par?
Please provide full description and show your all calculation