55.8k views
1 vote
Durango Water Works has an outstanding issue of preferred stock that has a par (maturity value) of $75.00. The stock, which pays a quarterly dividend of $1.10, will be retired by the firm in 20 years. If the preferred stock is currently selling for $68.00, what is the preferred stock's yield-to-maturity?

User Shawntel
by
7.8k points

1 Answer

4 votes

Answer:

answer is 6.72 percent .

Thank you

User James Burton
by
8.2k points