Assume a share of preferred stock pays an annual dividend of $$12$; the first dividend is in exactly $12$ months. The preferred's yield is $6\%.$ The preferred has a conversion ratio of $10$ and the underlying stock has a price of $$27.$ What will happen to this preferred's price if interest rates rise by $1\%?$

No change in the preferred's price

The preferred's price will increase.

The preferred's price will decrease.