The yields on preferred stock tend to most often mirror the yields on:
A) common stock.
B) derivatives.
C) bonds.
D) risk-free securities.

Question

Quizplus · Accepted Answer

Preferred stock yields often mirror the yields on bonds because both are fixed-income securities that pay dividends or interest at a set rate. Unlike common stock, which has variable dividends and is more influenced by company performance and market conditions, preferred stocks and bonds provide more predictable income streams, making their yield behaviors similar.

The Yields on Preferred Stock Tend to Most Often Mirror