Fixed Income FAQs
This page includes frequently asked client questions regarding Fixed Income.
How to Get Started Investing in Fixed Income
- Why choose fixed income investing?
- What are the risks?
- How do I invest?
- Why Invest in Fixed Income through Schwab?
The What, Where and How of Bonds
- What are Bonds?
- How are bonds bought and sold?
- What is the return on my bond?
- What is a yield?
- What is the difference between coupon and yield, for fixed income securities?
- What happens to my interest payment if rates go up or down?
- What is accrued interest?
- What determine's a bond's interest rate?
- What is yield to maturity (YTM)?
- What are discount and premium bonds?
- Why is the coupon higher than the yield?
- What is yield to worst (YTW)?
- What does the credit rating mean, for Moody's or S&P?
- How do I sell my bonds online?
- Can I trade a bond at a price listed on Schwab.com or my statement?
- What is an evaluated or matrix price?
- Can I choose a price limit at which to sell my bond?
Fixed Income Strategy
- What is bond laddering?
- What is a barbell?
- What is a bullet?
Schwab Fees for Trading Fixed Income Products
- What does Schwab charge for individual bonds?
- What does Schwab charge for other fixed income products (ETF, Mutual Funds)?
CDs at Schwab
- What is the difference between a brokered CD and a bank CD?
- When can I buy CDs through Schwab CD OneSource®?
- What is the minimum investment to purchase a CD at Schwab?
- What are the benefits of buying CDs through Schwab CD OneSource?
- What happens if I need my funds before the CD matures?
- How does FDIC insurance work for CDs in Schwab and CD OneSource?
- Why is the price of a CD online different than par; what I paid for it?
How to Trade New Issue Municipals at Schwab
- How can I obtain more information on a particular offering?
- How often are new municipal bond offerings posted?
- When will I know the final price and details of a new offer?
- What are the cost and minimums for buying new-issue municipal bonds?
Looking to trade bonds
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