Sarampi Corporation recently issued preferred stock for the first time in its history, in an attempt to raise capital fo

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Sarampi Corporation recently issued preferred stock for thefirst time in its history, in an attempt to raise capital for theirmeasles vaccination. Sarampi’s Corporation preferred stock has aface value of $125 that pays a 7% percent annual dividend. a) Ifthe preferred stock currently yields 9%, what is the market valueof Sarampi’s Corporation’s preferred stock? (35 points) b) Mentiontwo differences between Preferred Stocks and Common Stocks. (15points)
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I know you love bonds and you enjoyed this class so much, thatbonds have become your best friend. Suppose a seven-year, $1000corporate bond with an 8% coupon rate and semiannual coupons istrading with a yield to maturity of 6.75%. a. Is this bondcurrently trading at a discount, at par, or at a premium? Explain.(10 points) b. If the yield to maturity of the bond rises to 7%(APR with semiannual compounding), what price will the bond tradefor? (25 points