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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%

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