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Commissions eat your coupon
Many investors look only at the yield to maturity, ignoring real costs. You must subtract broker fees for buying, selling, and exchange fees from the final profit. If your capital is small, even a 0.05% transaction fee turns into tangible losses over distance.
A yield calculator often lies, ignoring your transaction costs.
When calculating real profit, subtract everything: from exchange fees to custody fees. A bank deposit is more transparent in this regard: there are usually no fees for opening or maintaining it at all.
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