OTC vs Exchange-Traded Bonds in Korea: the 0.3% fee break-even
Korean brokerages charge no commission on OTC bonds but 0.1-0.3% on exchange-traded ones. Converting that fee into an annual yield gap shows where the two routes break even.
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#채권투자 3 posts
Individual Treasury Bond Rates: the Trap in 8.1% a Year
The "8.1% annual average" attached to the 20-year bond's 161.8% maturity return is that total divided by 20. The real compound rate is 4.93%, and 4.41% after tax. Coupon and spread, back-calculated by maturity.
Korea's Individual Treasury Bonds: After-Tax Math for 10 vs 20 Years
Korea's individual investor treasury bonds pay their premium, compounding and tax carve-out only at maturity. Using February's rates, here is what 10 million won returns after tax across 5-, 10- and 20-year tranches.