Mid-States Utility Company Sold a 10-Year Note with a 7

question 118

Multiple Choice

Mid-States Utility Company sold a 10-year note with a 7 7/8% coupon and a par value of $1,000.If the note sold at a discount for $930, what was the implied yield-to-maturity to the nearest tenth of one percent? Assume interest is paid semiannually.

• A)8.5%
• B)8.7%
• C)8.9%
• D)9.4%

---

Definitions:

Irrational Thinking

Thought processes characterized by unreasonable, flawed, or distorted perceptions of reality, often leading to negative emotional and behavioral outcomes.

Beck

Refers to Aaron Beck, a pioneering figure in cognitive therapy known for his work on depression.

Freud

Sigmund Freud, an Austrian neurologist, established psychoanalysis as a technique for addressing mental disorders through conversations between a psychoanalyst and their patient.

Bandura

Albert Bandura, a psychologist known for his work on social learning theory, emphasizing the importance of observing, modelling, and imitating the behaviors, attitudes, and emotional reactions of others.