Clear assumptions. Useful comparisons.

A consistent language, not a universal ranking

YieldVine uses the word yield only with a stated metric or mechanism. A CD APY, bond yield to maturity, fund distribution yield, and staking reward estimate are not interchangeable. We align the arithmetic where useful while preserving differences in risk, currency, access, and contractual structure.

The worked numbers on this site are hypothetical. They are not current quotes, investment offers, or forecasts. Charts showing illustrative asset categories do not represent measured category performance. The homepage compounding chart is a deterministic calculation from its stated assumptions, not a market-data feed.

The minimum comparison record

Record the product or route, metric name, observation date, lookback window, intended holding period, unit or currency, fee convention, compounding rule, and exit conditions. Identify which information is verified, which is a provider claim, and which is your own assumption.

Compare matching definitions before comparing magnitudes. A different denominator or observation period can explain an apparent advantage. Then use the risk checklist to record the exposures the number does not describe.

APY and compounding

For a constant nominal annual earning rate r compounded n times per year, the simplified effective annual yield is:

Here r is expressed as a decimal. The formula assumes equal periods, an unchanged rate, and reinvestment of earnings. For a 5% nominal annual rate with monthly compounding, APY is approximately 5.1162%. A $10,000 balance becomes approximately $10,511.62 after one year with no fees, taxes, or external flows.

When the starting input is already an effective annual yield y, growth over t years is modeled as principal × (1 + y)^t. Do not divide an APY by twelve and then compound it as if it were a nominal annual rate. Actual deposit calculations follow the applicable agreement and disclosure rules; consult the CFPB APY reference in the source library.

Current yield and bond cash flows

Current yield divides annual coupon dollars by purchase price:

A $40 annual coupon divided by a $960 purchase price is approximately 4.17%. This income ratio excludes the change from purchase price to maturity value and is not a full realized-return calculation.

Yield to maturity is the discount rate equating the purchase price to the present value of scheduled coupons and principal. It assumes the contractual cash flows used in the model. Reinvesting coupons at that rate is a separate assumption when projecting compounded ending wealth. Callable securities also need the relevant call scenarios. FINRA references provide the underlying definitions.

Duration is an approximation

For a suitable duration measure and a small yield change, the first-order relationship is:

D is duration and Δy is the yield change as a decimal. A duration of five and a one-percentage-point yield increase imply approximately a 5% price decline. The calculation omits convexity, changes in modeled cash flows, and other market effects. It is a sensitivity illustration, not a rate forecast or a complete loss model.

The duration article distinguishes maturity, modified duration, effective duration, and the difference between a fund and an individual bond.

Fund income and total return

A distribution yield is only meaningful with its numerator, denominator, and period. A trailing payment sum and an annualized latest payment can produce different results. A thirty-day SEC yield is a standardized income measure, not a promised future distribution. Check whether expenses or waivers are already reflected before making adjustments.

For a simplified holding period with no external flows and no reinvestment:

A $100 investment ending at $94 after paying $6 has a zero holding-period return before costs and tax. Published total returns may assume reinvestment and follow more specific conventions. Keep NAV returns separate from results based on actual market executions. The ETF guide and issuer terminology reference explain the distinction.

Staking fees and token units

A fee taken as a share c of gross rewards r gives a simplified net reward rate r × (1 − c), before other charges. A hypothetical 8% gross rate and 10% reward commission yield 7.2% under a simple noncompounding illustration. This is not the same as an asset-based annual fee.

If token holdings grow at rate r while net token supply grows at rate i over the same period, a simplified relative supply-share change is:

That calculation is not consumer-price-inflation adjustment and is not a dollar return. The actual staking route can add validator, contract, custody, and exit dependencies. Read the relevant Solana or Ethereum guide rather than assuming one protocol’s rules apply everywhere.

Token growth versus currency return

With no external flows and before additional costs, combine token-unit growth r with a token-price change p as follows:

A 5% increase in units and a 20% price decline produce 1.05 × 0.80 − 1 = −16%. Keep rewards, contributions, withdrawals, and price movement separately recorded. Simple ending-balance division does not measure performance when money or tokens were added during the period.

What the examples leave out

Unless stated otherwise, the illustrations omit tax, changing rates, default, fees, trading spreads, and external cash flows. Each omission narrows the question being answered. It should not be interpreted as a claim that the omitted factor is absent from a real product.

Use the practical resources for more detailed recording fields, the printable cheat sheet for a compact reference, and the source library for original definitions. General education cannot establish which investment is suitable for a particular person.