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Meade Corporation bonds mature in 20 years and have a yield to maturity of 13.5 percent. The par value of the bonds is $1,000. The
Meade Corporation bonds mature in 20 years and have a yield to maturity of 13.5 percent. The par value of the bonds is $1,000. The bonds have a 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 = 12,50%; CGY = 1,00% CY = 10.50%; CGY = 3,00% O CY = 12,00%; OGY = 1,50% ) CY = 11,50%; OGY = 2,00% O CY = 11.00%; CGY = 2,50%
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