Essay
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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