Floating rate preferred stock [LO17-5] Barnes Air Conditioning Inc. has two classes of preferred stock: floating rate preferred stock and straight (normal) preferred stock. Both issues have a par value of $100. The floating rate preferred stock pays an annual dividend yield of 8 percent, and the straight preferred stock pays 9 percent. Since the issuance of the two securities, interest rates have gone up by 1.00 percent for each issue. Both securities will pay their year-end dividend today. a. What is the price of the floating rate preferred stock most likely to be? (Do not round Intermediate calculations and round your answer to 2 decimal places.) Price k b. What is the price of the straight preferred stock likely to be? (Do not round Intermediate calculations and round your answer to 2 decimal places) Price
