Understanding quiz questions on Yield

I am having a difficult time understanding yields. I under how to calculate it during the quizzes, but the uncertainty for me is coming during the questions that have answers with " Regardless of the issuers profitability". I know when a yield is discounted, par, or premium.

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Hi @Lengthy_silver_flami, next time you see one of these questions, you can click on the mail icon in the top right to open up a feedback form for that specific question. You can also click on the ID code to copy a shareable URL to post here!

We have tens of thousands of questions so it’s hard to give more detail without knowing the id code or specific concept, but I think this might clear up what you mentioned:

Participating preferred stock is eligible for additional dividends above the stated dividend rate. If the issuer has a successful year, this type of preferred stock will pay more than the fixed dividend rate. Because the participating feature is a benefit to investors, these shares will be in higher demand than a similar security without the participating feature. Higher demand results in a higher market price and lower yield. Therefore, a similar security without the participating feature will trade at a lower market price and a higher yield.