Will an increase in inflation have a larger impact on the price of a bond or...

Will an increase in inflation have a larger impact on the price of a bond or preferred stock?

The preferred stock.

Inflation doesn’t affect either the bond or the preferred stock price.

The impact will be the same.

The bond.

Solutions

Expert Solution

The preferred stock

A preferred stock has perpetual payment of dividend so to has more effect of chsnge in inflation rate

jeff jeffy answered 2 years ago

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