Stern Design has bonds outstanding that have an 8 percent annual coupon and a face value of $1,000. The bonds will mature in 15 years, although they can be called before maturity at a call price of $1,050. The bonds have a yield to call of 6.8 percent and a yield to maturity of 7.1 percent. If interest rates remain at their current level, how long until these bonds may first be called?

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The Answer of Stern Design has bonds outstanding that have an 8 percent annual coupon and a face value of $1,000. The bonds will mature in 15 years, although they can be called before maturity at a call price of $1,050. The bonds have a yield to call of 6.8 percent and a yield to maturity of 7.1 percent. If interest rates remain at their current level, how long until these bonds may first be called?

Stern Design Has Bonds Outstanding That Have an 8 Percent