YieldVine.comPractical resource · Hypothetical examples
Bond comparison worksheet
Compare the quote and the risk on the same page.
Start with a consistent quote
Record the issuer, security identifier, observation date, settlement convention, face value, purchase price, annual coupon, maturity, and any call schedule. Then add the full yield metric and the source. A percentage without those fields is not a complete comparison.
One payment, three purchase prices
These hypothetical bonds each have one payment in exactly one year: $40 interest plus $1,000 principal. There are no fees, tax, defaults, or interim coupons in this simplified model. The coupon rate is 4% in every row.
| Scenario | Price | Annual coupon | Current yield | One-year YTM |
|---|---|---|---|---|
| Discount | $980.00 | $40 | 4.08% | 6.12% |
| At face value | $1,000.00 | $40 | 4.00% | 4.00% |
| Premium | $1,020.00 | $40 | 3.92% | 1.96% |
The contractual final payment does not change. The price paid changes both the income ratio and the overall return available under the assumptions.
Add the risk columns
Put duration, credit exposure, liquidity, call provisions, and an intended sale date next to the yield. A planned sale before maturity introduces a future market price. A call provision introduces a different permitted payment schedule. Neither is resolved by the coupon rate.
Ask a question in dollars
What amount leaves the account at settlement? What payments are scheduled before the money is needed? What price would be required on an early sale? Which costs are excluded from the quote? Translate a small percentage-point difference into an amount over the actual holding period.
Save the record
The hypothetical table above is an illustration, not a list of available bonds. Use the fields as a model for your own offline notes, keeping verified facts separate from assumptions.
Read the bond yield explainer and the duration guide before treating a quote as a full outcome forecast.