A higher yield needs a better question.

Fixed income · Separating income from underlying risk

A bond’s quoted yield is an input to the analysis, not a complete description of the investment. SEBI’s investor guidance identifies credit risk, interest-rate risk, and liquidity risk as relevant considerations.

Know which number you are reading

The coupon is the interest specified by the bond’s terms. The purchase price affects the yield. Yield to maturity estimates the return under assumptions that include holding to maturity and receiving scheduled payments; it is not an unconditional promise.

Before asking how much extra income a bond offers, ask what could prevent you from receiving it.

Three risks to examine

Credit: Can the issuer meet its obligations? Review cash generation, leverage, repayment schedules, and the latest rating rationale.
Interest rates: Bond prices can fall when market rates rise. Consider maturity and sensitivity to changes in rates, especially if you may sell early.
Liquidity: Can you find a buyer at a reasonable price when you need cash? A screen quote alone does not establish executable liquidity.

Compare like with like

Look at maturity, seniority, security, call options, costs, and tax treatment alongside the yield. Check the actual instrument documents. A secured label does not establish that principal is protected in every outcome.

Reference: SEBI Investor: understanding bonds. Use the offer document and current issuer disclosures for instrument-specific analysis.

Educational content. No bond, yield target, or allocation recommendation is made.