What does one yellow bar depict in a debt distribution diagram?

In a debt distribution diagram, a yellow bar represents coupon repayments. Coupon payments are the interest payments that the borrower makes to the bondholders at regular intervals until maturity. They are typically expressed as a percentage of the bond's face value and are a crucial aspect of fixed-income securities.

The color coding in debt distribution diagrams is often used to provide a clear visual representation of different aspects of the bond's cash flows, allowing investors to easily identify and understand the timing and amount of coupon repayments versus other types of payments or risks associated with the debt instrument. This clarity is essential for investors who need to assess the cash flow profile of their investments.

Understanding this concept is vital for analyzing the returns and risks associated with bonds, especially when evaluating the overall structure of a bond's cash flow and how it fits within an investment portfolio.