Since the preferred stocks are cumulative in nature, the dividend amount not paid in the current year will be accumulated and paid in the next year.
Preferred dividend to be paid in 2017 = Value of preferred stock x Dividend rate
= (4700 x $50) x 5%
= 11750
Dividend to be paid in 2018 = same as 2017 as no new preferred stock issued
= 11750
Total dividend to be paid in 2018 = Dividend to be paid in 2018 + Dividend to be paid in 2017 – Dividend paid in 2017
= 11750 +11750 -7900
= $15600
12.0 years will take for these bonds to mature.
What is a coupon in bonds?
The term "coupon," which is also sometimes referred to as "coupon payment," refers to the annual interest rate that is paid on a bond from the date of issuance until maturity. It is described as being a percentage of the bond's face value. When discussing coupons, the coupon rate is frequently employed.
How does coupon rate affect bond price?
The price of bonds is significantly influenced by the coupon rate on a bond in comparison to current market interest rates. Bond prices increase when a coupon is more than the current interest rate; prices decrease when a coupon is lower.
Learn more about coupon in bonds: brainly.com/question/22504216
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I would say a
<span>.increase in supply</span>
