Fixed income pricing

 
  • Access the lowest prices available to FSL central from over 200 dealers.1
  • Place online trades for new issue CDs and Treasuries at auction for no additional cost.
  • Choose from hundreds of no-load, no-transaction-fee bond mutual funds.
  • What does FSL central charge for fixed income investments?

    Products Pricing
    Individual bonds - new issues $0*
    Individual bonds - secondary trades

    Corporate bonds
    Municipal bonds
    Government agencies
    Zero-coupon Treasuries (including STRIPS)
    $1 per bond online
    $10 minimum, $250 maximum online**
    Broker-assisted trades:
    Online fee plus $25
    Treasuries - new issues and secondary trades
    Treasury bills, notes, bonds
    Treasury inflation-Protected Securities (TIPS)
    Treasuries Floating Rate notes
    $0
    Broker-assisted trades:
    $25
    CDs - new issues
    $1,000 minimum required and $1,000
    increments per investment
    $0*
    CDs - secondary trades $1 per CD online
    $10 minimum, $250 maximum online**
    Broker-assisted trades:
    Online fee plus $25
    Bond funds – in Mutual Fund OneSource® service $0 transaction fee, no loads
    Broker-assisted trades:
    Online fee plus $25
    Get assistance from our team of fixed income specialists if you have any questions. Call 877-903-8069.

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    The fundamentals of bond pricing

    #1: Understand all costs and fees

    Bonds are often quoted with several cost components bundled together, so it’s important to understand any commissions or transaction fee built into the price (and indirectly the yield), as well as any additional fees.

    #2: Compare costs to maximize your return potential

    Because the yield you earn on a bond is impacted by what you pay for it, shopping around for the lowest price and transaction fees can help you potentially increase your return on a bond without adding risk.

    #3: Compare price against yield

    Consider a hypothetical bond with a 4% coupon rate and a 10-year maturity. The higher the price, the lower the yield.
    Dealer A B C
    Price
    $100.00
    $100.50
    $101.25
    Yield to Maturity
    4.00%
    3.94%
    3.94%
    Source: FSL central Center for Financial Research and Bloomberg. Assumes semi-annual coupon payments. For illustrative purposes only.

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