Question: (1 point) (Exercise 6.38) A $30000 par value 9% preferred stock with semiannually dividends is bought to yield 6% convertible semiannually into perpetuity. However, the

(1 point) (Exercise 6.38) A $30000 par value 9% preferred stock

(1 point) (Exercise 6.38) A $30000 par value 9% preferred stock with semiannually dividends is bought to yield 6% convertible semiannually into perpetuity. However, the preferred stock is actually called at the end of 12 years at par. Find the nominal yield rate convertible semiannually that an investor would actually earn over the 12 -year period. ANSWER =

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