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Subject:  Re: Bonds vs Bond Funds--Again Date:  12/31/2009  7:13 AM
Author:  schurchill16 Number:  29622 of 35930

Why is beating the bond market easier than beating the stock market if the transaction costs are higher?

I pay $10 to buy a bond. I pay $8 to buy and $8 to sell stocks.

If I buy bonds to hold to maturity, the transaction cost of a bond is LESS.

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