Replies to post #6647 on Fannie Mae Preferred S (FNMAS)

[skibrian]

joe...an investor's current yield is based on your cost basis in bond language. It is the yield you can get by buying that security that day. once bought, that investor's current yield does not change unless the coupon changes for some reason (e.g., variable rates). Current yield changes throughout a trading day, and each new investor gets a different CY based on the price paid for the security.

yield to maturity (YTM) is your total yield of cost basis + any dividends/interest + redemption of the bond/preferred.

look it up. finance 101