Fannie Mae Preferred S (FNMAS)

[skibrian]

JS -- you created more yield by trading to the higher pfd. yield (assuming you didn't get nailed by taxes per another wise poster)

nope...if you invest in 2008, whether a bond, of preferred, you can calculate yield to maturity and it is way higher than the 6% in this example.

$2 invested, $25 gain, add in dividends over the years, calculate internal rate of return. and his current yield is based on his original cost basis. someone who buys at $25 calculates a different current yield of 6%.

Again, you are both right, depending on perspective.