7. We have a callable preferred stock, which pays a dividend of $12 per annum and is callable at 106 par in 7 years. Derive its yield (required rate of return), if its price is $98 8. The yield of a taxable corporate bond is 10%. The investor is in the 30% tax bracket for federal, state and city income tax. What is the effective tax rate applicable to this investor? 9. There is a callable bond, which pays $8 per year. It is callable after 5 years at $1080 and the yields are 10%. If it is not called and the rights of the firm expire (to call it), what is the price at that point