No. of Recommendations: 0
Paul worked his TINT yield example without commish, as it is legitimate to do when a larger point is trying to be made. But, eventually, commish does have to be backed into calculations, and I got to wondering what its impact would be.

Consider a 20-year zero priced at 60. If traded commish-free, its YTM would be 2.57%. If traded at the same price through actual brokers, but in differing quantities, the impact of commish on yield is surprisingly minimal.


One 2.49% 2.50% 2.53% 2.49%
Five 2.55% 2.56% 2.56% 2.55%
Ten 2.56% 2.56% 2.56% 2.56%
Twenty 2.56% 2.56% 2.57% 2.57%
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