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Meade Corporation bonds mature in 22 years and have a yield to maturity of 9.6 percent. The par value of the bonds is $1,000. The
Meade Corporation bonds mature in 22 years and have a yield to maturity of 9.6 percent. The par value of the bonds is $1,000. The bonds have a 7.8 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.) O CY=9.93%; CGY = -0.33% OCY= 9.33%; CGY = 0.27% O CY=9.73%; CGY = -0.13% OCY-9.13%; CGY = 0.47% OCY=9.53%; CGY = 0.07%
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