Those are the key terms for series 42 preferred Class B shares issues by Bank of Montreal (BMO)

Shares outstanding (June 29, 2005) = 16,000,000

Key terms:

Holders will be entitled to receive non-cumulative preferential fixed quarterly dividends as and when declared by the board of directors of the Bank payable in the amount of $0.275 per share, to yield 4.40 per cent annually.

On August 25, 2022 and on August 25 every five years thereafter (the series 42 Conversion Date), the holders of preferred Shares Series 42 will have the right to elect to convert any or all of their Preferred Shares Series 42 into an equal number of Non-Cumulative Floating rate Class B Preferred Shares Series 43 (Non-Viability Contingent Capital (NVCC)) (the Preferred Shares Series 43). Should any such August 25 not be a business day, the Series 42 Conversion Date will be the next succeeding business day.

What is the fair price for this preferred share?