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Charlie,

Thanks for your informative response. So, the conclusion seems to be if one invests in liquid bonds (Gov, investment grade corporate) then transaction costs are low given one uses the right broker (Fido, the example you gave) and whose holding period makes sense in terms of the fees incurred ($8 for a 10 year bond is $0.80 or 8 BPS per year).

You mentioned that anything less than 10 bonds is "unmarketable" and also mentioned the term "round lots". I take "round lots" to mean lots of 100? And, also, that all bonds trade in $1,000 increments?

I also noted the three books you recommend and plan on reading all three - probably sometime over the next six months.

Thanks again. I really appreciate it.
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