Lloyd corporations 14% coupon rate, semiannual payment, $1,000 Par value bonds, which mature in 30 years, or callable 5 years from today at $1,050. They sell at a price of 1353.54, and the yield curve is flat. Assume that the interest rates are expected to remain at their current level.
a) What is the best estimate of these bonds remaining life?
b) If Lloyd plans to raise additional capital and wants to use that financing, what coupon rate would have to set in order to issue new bonds at par?