Bonds

Costs Associated with Investment in Bonds

When you buy a bond, you are eligible to the percentage of a coupon payment due from the trade settling date till the next payment date for coupon. The previous owner of the bond is entitled to the percentage of that coupon payment from last coupon payment date up till the trade settlement date. Costs are predictable and unavoidable part of investing. Primarily, the cost associated with investing in bonds is the commission paid to the brokers on buying and selling bonds.