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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?

For questions contact:

National Bond Desk 800-626-4600

See also Schwab Insights and Ideas 

Looking to trade bonds

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Clients of independent investment advisors:
You may also contact your advisor or call Schwab Alliance at 800-515-2157