How are a bond’s coupon, yield and duration different?

Coupon describes contractual interest under the bond’s terms. Yield relates price and expected contractual cash flows using a stated method. Duration describes timing or price sensitivity under a specified definition. A coupon number alone does not establish yield, remaining maturity or a fund’s interest-rate risk.

Explained on 26 October 2026. This is an educational answer drawn from the dated article below; examples are hypothetical unless a specific source observation is identified.

How it works

The same coupon can accompany different traded prices and remaining periods. A benchmark replacing one government security with another therefore requires more than comparing the printed coupon rates. Use the actual price, cash-flow schedule, maturity and the duration measure relevant to the question.

A simple example

In a hypothetical comparison, two bonds have different coupons and prices. Selecting the higher coupon does not establish the higher yield or the smaller response to a yield change. Those outcomes require their own calculations from the relevant inputs.

What to check

Label the exact measure and observation date.
Use price and cash flows for a yield calculation.
Do not infer duration from coupon alone.

Read the full event and evidence

Nifty’s 30 October Debt Rebalance: A Fund Category Can Stay the Same While Its Benchmark Mix Changes explains the original event, its dates and the supporting documents. Event context: 23 October notice; effective 30 October 2026.

Sources & supporting evidence

Read the dated documents and reporting behind this explanation.

For education and general information. This article does not provide personalized investment advice. Investments involve risk; past returns do not guarantee future performance. Check current scheme documents before acting.

How are a bond’s coupon, yield and duration different?