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5. You purchased 250 preferred shares of Silent Witness Security Systems Inc. that pays a dividend of $2.25 per share every 3 months. Current interest
5. You purchased 250 preferred shares of Silent Witness Security Systems Inc. that pays a dividend of $2.25 per share every 3 months. Current interest rate is j4=6%. - What would you be willing to pay for the 250 shares? - If interest rates rise to 8% compounded quarterly, how much would you expect to gain or lose if you sell all of your shares? (The next dividend is due in 3 months and the dividend per share is still $2.25.)
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