单选题 For which of the following securities is estimating the future cash flows least difficult? A. 5-year, 6% bond with two years of call protection. B. 3-year note with a coupon of Libor + 100 basis points. C. 8% preferred stock with mandatory redemption in five years.

【正确答案】 C

【答案解析】If preferred stock must be redeemed on a specific date, its future cash flows are as predictable as those of an option-free bond: the (dividend) payments are known, the principal repayment date is known, and the security is not convertible or exchangeable. The principal repayment date is not known with certainty for a callable bond and the coupon payments are not known for a floating-rate security.