Problem 1 (6 marks) Banco. has preferred shares issued and outstanding. The preferred shares have a dividend rate of 8 percent and a par value of $75.00 and no maturity date. a. If market interest rates for preferred shares are 7 percent, what will these preferred shares be selling for in the market today? (3 marks) b. If these preferred shares matured in 5 years and the market rate of interest was 7 percent, what would the company's preferred shares be selling for in the market today