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Percent of Face Value To Pay as Points When Buying Bonds



If you are buying $10,000 of bonds paying between 6 and 9% interest for a
fixed five year term, how many points should you expect to pay up front to
enter the investment?

My parents bought bonds from Schwab, and I saw they were paying something
around 2% of the face value to enter the investment, which strikes me as a
complete rip-off.

-- 
Will
westes AT earthbroadcast.com




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