12. What is the value of a preferred stock that pays semi-annually a $7.23 dividend to an investor with a required rate of return of 8% per year? A) $90.37 B) $27.83 C) $90.00 D) $180.75 13, The Johnson Corporation issues a bond which has a coupon rate of 10.20%, a yield to maturity of 10.55%, a face value of $1,000, and a market price of $850. Therefore, the annual interest payment is a. $101.75 b. $102 c. $105.50. d. $120.0. 14. Ma non owns a corporate bond with a coupon rate of 8% that matures in 10 years. Ruth owns a corporate bond with a coupon rate of 12% that matures in 25 years. If interest rates go down, then a. The value of Andre's bond will decrease and the value of Ruth's bond will increase. b. The value of both bonds will increase. c. The value of Ruth's bond will decrease more than the value of Andre's bond due to the longer time to maturity. d. The value of both bo nds will remain the same because they were both purchased in an earlier time period before the interest rate changed. 15. A PUT Option is: a. The possibility to choice something b. It is an agreement to sell an underlying asset at a specific price on a certain expiration date c. It is an agreement to buy an underlying asset at a specific price d. It is an agreement to buy an underlying asset at a specific price on a certain expiration date