What is the preferred stock yield-to-maturity

Reference no: EM13280253

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?

1. 6.72%
2. 5.64%
3. 4.28%
4. 7.73%

Reference no: EM13280253

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