A share of noncallable preferred stock has a par value of $100 and pays 7 percent annual interest. Which of the following statements is true?

The stock will pay $7 per year in interest as long as the company is in existence.

The stock will pay $7 in interest in the first year, but the amount paid in future years will depend on what happens to interest rates in the future.

The stock will pay $100 per year in interest for 20 years.

The stock will pay $7 per year in interest and will pay the investors back the $100 par value at maturity.