Meade Corporation bonds mature in 10 years and have a yield to maturity of 6.5 percent. The par value of the bonds is $1,000. The bonds have a 12.5 percent coupon rate and pay interest on a semiannual basis. What are the current yield and capital gains yield on the bonds for this year? (Assume that interest rates do not change over the course of the year.) CY=8.70%;CGY=2.20%CY=8.90%;CGY=2.40%CY=9.10%;CGY=2.60%CY=8.50%;CGY=2.00%CY=8.30%;CGY=1.80% Question 4 1 pts McCue Inc.'s bonds currently sell for $1,184. They pay a $93 annual coupon, have a 17-year maturity, and a $1,000 par value, but they can be called in 2 years at $1,093. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC? (Subtract the YTC from the YTM; it is possible to get a negative answer.) \begin{tabular}{l} \hline 3.28% \\ \hline 3.08% \\ \hline 3.48% \\ \hline 3.68% \\ \hline 3.88% \\ \hline \end{tabular}