A Corporation's bond has an 10% coupon rate, pays interest semiannually, and matures in 15 years. If the investors' annual required rate of return is 8.5%, the value of the bond is:

B. A Corporation recently issued $50.00 par-value preferred stock that pays an annual dividend of $5.00. If the stock is currently selling for $77.00, what is the expected return of this preferred stock?