[{"data":1,"prerenderedAt":16},["ShallowReactive",2],{"learn-coupon-rates-versus-yields":3},{"html":4,"toc":5},"\u003Ch2 id=\"read-start-with-the-denominator\">Start with the denominator\u003C\u002Fh2>\n\u003Cp>A fixed coupon rate describes annual interest relative to face value. Current yield compares annual coupon income with the bond’s current price. They answer different questions and need not be equal.\u003C\u002Fp>\n\u003Cp>Yield to maturity is a broader calculated measure based on price and the scheduled cash flows through maturity. It depends on assumptions, including payments being made as promised; realizing that return also depends on reinvestment conditions. It is not a guaranteed outcome. The \u003Ca href=\"https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Fgeneral-resources\u002Fnews-alerts\u002Falerts-bulletins\u002Finvestor-bulletins\u002Fwhat-are\" rel=\"external\">SEC’s bond bulletin\u003C\u002Fa> explains the distinctions in general terms.\u003C\u002Fp>\n\u003Ch2 id=\"read-compare-like-with-like\">Compare like with like\u003C\u002Fh2>\n\u003Cp>When reading a quote, ask which yield is shown, when the price was observed, and whether the calculation includes costs or taxes. A coupon percentage alone is not enough to compare investments bought at different prices.\u003C\u002Fp>\n\u003Ch2 id=\"read-label-your-records-clearly\">Label your records clearly\u003C\u002Fh2>\n\u003Cp>Keep separate fields or notes for face value, purchase price, coupon rate, costs and the date of any valuation. Do not relabel coupon income as total investment performance. Struct Capital’s tracking views should be read alongside the original investment records; this website is not a live pricing or yield service.\u003C\u002Fp>\n",[6,10,13],{"id":7,"title":8,"level":9},"read-start-with-the-denominator","Start with the denominator",2,{"id":11,"title":12,"level":9},"read-compare-like-with-like","Compare like with like",{"id":14,"title":15,"level":9},"read-label-your-records-clearly","Label your records clearly",1793396938800]