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Author: mschorer One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: How to use bond calculator Date: 11/20/2001 9:57 AM
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Does anyone know why the fee or commission for buying a bond is not part of the numerous bond calculators available on line?

I know that the calculation of the ytm is a way to compare bonds, but it seems that what I actually pay out to buy the bond includes a fee and that alters my REAL ytm.

Should I take the fee (commission) and divide it among the bonds? E.g., Schwab charges $5 per 1000, so I would add $5 to the price of each $1000 bond? (If the price per $1000 bond is 98, add 98 + 5 = 103?)

It could be I am not thinking about this correctly, so any help would be appreciated!
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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2459 of 35400
Subject: Re: How to use bond calculator Date: 11/20/2001 11:53 AM
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Some bond brokers charge a commission, and some just buy the bond on the market at one price and sell it to you at a higher price. Some brokers charge you both ways.

In any event, yes, you should put your total cost into the bond calculator.

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Author: WPatch Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2514 of 35400
Subject: Re: How to use bond calculator Date: 11/30/2001 10:04 PM
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Should I take the fee (commission) and divide it among the bonds? E.g., Schwab charges $5 per 1000, so I would add $5 to the price of each $1000 bond? (If the price per $1000 bond is 98, add 98 + 5 = 103?)

If the price is quoted at 98, each bond will cost $980. Adding a commision of $5 it will cost $985 a bond or 98.5 per hundred.


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