An investor is considering a purchase of one of the following preferred shares:

BCD $$50$ par, $7\%$ cumulative preferred stock

ZZZ $$50$ par, $7\%$ straight preferred stock

Assuming both securities are similar other than their features, which statement is true?

Select the answer

Making yield assumptions with the information provided is

impossible

The ZZZ shares will likely maintain a lower yield than BCD

shares

The BCD shares will likely maintain a lower yield than ZZZ

shares

The yield on both shares should be the same