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Tuesday, April 17, 2012

Factors not looked at while calculating yield on tax saving bonds

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  One obvious factor is the yield doesn't take into account the taxes that you will end up paying on interest received. Other factor is that this formula doesn't take into account any transaction costs that you incur.

I have another post lined up next week which looks at the limitations of the way these yields are being calculated in which I will cover some things that are not part of the way the yields are calculated by the issuer.

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