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McCue Inc.'s bonds currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can
McCue Inc.'s bonds currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that interest rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC?
2.62%
2.88%
3.17%
3.48%
3.83%
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