#pricing

2 public notes

Margin and markup use different starting points

Margin measures profit as a share of selling price; markup measures it as a share of cost. Buy an item for ₹80 and sell it for ₹100, and the ₹20 difference is a 20% gross margin but a 25% markup. The rupee amount is identical, while the percentage changes with the denominator.

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bonds

A bond's coupon and its yield are different numbers

A bond's coupon is based on its face value, while its current yield compares the annual coupon with its market price. A bond paying ₹80 a year has an 8% current yield at a ₹1,000 price. If its price falls to ₹800, the same ₹80 payment represents a 10% current yield.

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