Investing for Interest 5: The Hunt for Baby Bonds - MFI Series1, #75

Sometimes it is challenging to decide if a stock or security is a good deal or not. You don't have a measure of its worth, truly. However, you can tell directly from the price what kind of deal you are receiving with baby bonds. Baby bonds are bonds that function like preferred stock. They trade on the stock market, have a par value (usually $25), and pay a set amount of interest. If you can find a reliable company's baby bond selling under par value, your yield can be much higher than usual.
This technique allows income investors to collect excellent yields at great prices.