3. ABC company has two bonds outstanding in the market. The first bond matures in 4 years, while the cond band matures in 7 years. If the required return in the market changes by 3%, then A. The first bond will have a greater change in price B. The second bond will have a greater change in price C. The price of both bonds will be constant D. The percentage price change for both bonds will be equal 14. An 8 percent preferred stock with a market price of S110 per share and a $100 par value pays a cash dividend of A S4 B. $8 C. 58.80 D. 580 15. A firm has an issue of preferred stock outstanding that has a stated annual dividend of S4. The required return on the preferred stock has been estimated to be 16 percent. The value of the preferred stock is A $64 B. $16 C. $25 D. $50