26. If interest rates fall from 8 percent to 7 percent, which of the following bonds will have the largest percentage increase in its value? a. A 10-year zero-coupon bond. b. A 10-year bond with a 10 percent semiannual coupon. c. A 10-year bond with a 10 percent annual coupon. d. A 5-year zero-coupon bond. e. A 5-year bond with a 12 percent annual coupon. 27. You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid each 6 months. If you expect to earn a 10 percent simple rate of return on this bond, how much did you pay for it? a. $1,122.87 b. $1,003.42 c. $875.38 d. $950.75 e. $812.15 28. A share of perpetual preferred stock pays an annual dividend of $6 per share. If'investors require a 2 percent rate of return, what should be the price of this preferred stock? a. $57.25 b. $50.00 c. $62.38 d. $46.75 e $41.64 tonl was $4 00 and the exnected growth rate is