Bond Coupon Rate vs Yield

When comparing two or more bonds, do you focus on the coupon rate or the yield. In this 60 second video, I explain why comparing the yield is key.
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#bonds #yield #couponrate
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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[@prethyousa]

Thanks for this. Literally understood this concept now. Been looking for proper explanation since a week

[@theblimo4747]

Very helpful, and love the format in YT shorts. Thank you for posting this!

[@user-oc2jt8by5g]

Thank you!

[@dnd21]

thank you

[@jackperrini8116]

So what does the yield actually mean? If it’s 3% is the investor getting payed an extra 3% x Present value of the bond every payment?

[@neilsimon6871]

So when buying bonds should one just chose the bond with the highest yield regardless of coupon rate?

[@lancegordon5492]

It’s a measure of your return relative to price. If a 5 year bond is selling for 25% above par with a coupon of 2.5% annually, it’s a much worse deal than the same 5 year bond selling under par value with a 2% coupon rate

[@samuelj2408]

Overcomplicating it to the tenth degree .smh

[@gloriawitek6401]

Not work the time. So vague. Bad terminology