Hey, everybody. Good to be here today. My name is Brent Moors, and it' s time to learn all about bonds. What are they? How do they work? How do you trade a bond? That' s what we' re talking about. It' s not a common topic we talk here on our Schwab webcast, but I think it' s important, and it' s a big part of the Schwab. com website. Glad to see you here, whether you' re joining live or in the chat or live or on the recording. That' s great. Either way, let' s get to know Schwab. com. You can follow me on Twitter at BrentMoorsCS. Also, Connie Hill is in the chat helping us out today. Appreciate it, Connie. As you have questions pertaining to our topic, feel free to type those in.
Between Connie and myself, we' ll do our best. Did I mention Connie' s Twitter handle? At @ConnieHillCS is her Twitter handle. Now, before we get too far into this, remember the information today is for general informational purposes only. It' s not a recommendation. It' s not a recommendation. It' s not a recommendation. This is a recommendation of any security strategy or chart type. We' ll look at actual symbols, in this case, bond symbols, bond information. Remember, there' s risk in all investments that you make, including fixed income securities, which is what we' re going to be talking about here. All investmentals risk, including risk of loss. Okay. Let' s let' s start here. Let me just kind of relate a conversation I had.
It was just a few weeks ago, I got a call from a friend, and the friend asked me if she felt a 60 -40 portfolio was still appropriate. Do you guys know what I mean, a 60 -40 portfolio? What that is, it' s a traditional portfolio allocation where people place 60% of their assets into stock equity investments and 40% into bond investments. That' s kind of an old tradition. It' s not a recommendation. I' m not making any recommendations regarding that today, but it is just a classic way of some people allocating their portfolio. And you' ll hear other ways people allocate their portfolio, they' ll take 110 and they' ll subtract their age and they' ll say they should have that much in equity and a certain amount in bonds.
Look, there' s a lot of personal circumstances you can compare that can complicate it and can change it. And so there' s no stock answer for everybody. But I think to start out, what we need to do is we need to start out with what bonds are. We' re going to do that because there' s quite a bit of information here on Schwab. com on bonds. And so as we look, we re going to go to some different places on here to try and help you learn bonds. And there' s some educational stuff here on bonds as well. But basically to get you started, a bond is basically a loan in a sense. You are lending an entity. That entity may be a government, such as the U. S.
government, or it can be a corporation, for example. You' re lending them money. And in return for that, at some future date, they promise to pay you back that money. And they also are going to throw in some interest on top of that. That' s what a bond is. So there' s different types of bonds, but there s corporate bonds are very typically what people are referring to. There' s government bonds, treasuries is another name for those that people are going to refer to. Also, perhaps municipal bonds or munis. Have you heard of those? Those are bonds that are lent out to a governmental entity, such as a city or state, typically are municipal bonds there. Okay. And so there' s pros and cons to all of these.
In fact, on here, what we can do is we can look at some of these different types. If you go to the U. S. government, there' s a lot of different types of bonds. There' s a lot of different types of bonds. So let' s go to research. on Schwab. com. Click on research. You Re going to see an area down here that says bonds, CDs, and fixed income. Let' s click on it here. Okay. So I' m going to bring that up. And we' re going to give it one second to load up here. And let me just scroll up on the page. And you can see some of these different types of bonds displayed here on this page. Here' s the treasuries. I just mentioned that.
Actually, let me get my line tool here. U. S. treasuries. Okay. So that' s loaning money to the federal government. All right. There' s treasury zeros, which is a different type, but kind of a subset of that. A zero- coupon bond is one that doesn' To pay a regular interest payment, but you basically get it all at the end. Government and agencies. Okay. So that could be like a Fannie Mae type situation. Corporate bonds. Those are the kind of the other main one I' m going to talk about today. And there' s also these municipal bonds here. We already mentioned those. Okay. So there' s these different types of bonds. And for each bond you choose, you can choose how long you want to lend your money out for.
Three months, six months, and so on to real long-term bonds as well. And this is a table that is showing, basically, the interest rate for these different types of bonds. Now, you may look at some of these and you may go, well, look at municipal bonds. Let' s compare these municipal bonds to treasury bonds. And if we look at the same type bond, U. S. treasuries, to munis, look at how low the interest rate on munis is. Okay. Even if you check a different timeframe, lower interest rate on munis down here than federal government bonds. And there' s a reason for that. And I' m not going to get into taxes today other than to say there are tax advantages to municipal bonds, therefore, they' re more attractive to people.
If you get the tax advantage with them and therefore don' t have to pay as much for your Your city municipal bond, you don' You have to pay as much for those bonds to entice people to buy the bond as you would with the U. S. Treasury, okay? And that' s also true against corporate bonds as well. Now, another thing you' re going to notice on this table is some bonds are labeled with A, AA, AAA here. That' s just rating agencies, okay? There' s a couple major rating agencies out there. They grade the bonds, basically, in terms of how likely, essentially, they are to default. Because let' s say you buy a corporate bond in a company that is maybe kind of teetering on the edge financially. It' s possible.
They go bankrupt, and you never see your money again, okay? That As a possibility. And so we have these rating agencies that grade those in terms of likelihood of repayment. Let' s consider the same thing we did before. What' s going to pay the higher interest rate? Something that' s a little bit more iffy, which would be like the A bond, or something that' s more solid, like the AAA. And so these are typically going to have lower interest rates because they don' t have to pay as high of an interest rate. Now, the scale on this page is only going down to an A rating. They go below. These would all be considered investment-grade bonds. There are some bonds you may have heard of that are called high-yield bonds or junk bonds, okay?
Okay. Maybe a kinder term than the other. But a high-yield bond is going to have a lower grade on these, maybe a B or a C or something like that. And that means they' re more likely to default. But to do so, you get higher yields on those, higher interest rates on those. So the type of bond can affect it. The grade of the bond can affect it. The interest rate you get. And also, the duration can also affect it. Traditionally, what happens is, as you go out further, the interest rate goes up typically significantly. But that isn' t always the case. And we Rein in kind of one of these weird market situations. Where if you take the yield, this is called the yield curve right here on this graph.
And basically, what it is doing is it is graphing out what the interest rate is compared to the duration, okay? How long until maturity? Here' s three months of maturity, six months of maturity. I realize that' s a little hard to see those little numbers down there. But this is where you go out longer term. Traditionally, okay? Okay. Traditionally, on bonds, this is, you' d see a yield curve that kind of looks like this, okay? This would be a positive yield curve. It has a positive slope. And, you know, I may have exaggerated a little bit, but that' s kind of what it looks like. That' s what we call a normal yield curve or a positive yield curve. You can also have what' s called an inverted yield curve.
And that can actually go down. And that' s actually what we call a positive yield curve. That' s what we' ve had for what we call a flat yield curve, okay? But when you have an inverted yield curve, a lot of people are concerned about the economy there, okay? So, all right. So, it looks like we may be having some technical issues. We' re back. Okay, we' re back. We' re back in the game here. So, basically, I don' t know exactly. I don' t know exactly how long I was out for, folks. But basically, what I was saying is an inverted yield curve is usually a sign of a less healthy economic situation. But we' re actually seeming to be riding the ship a little bit there in terms of the yield curve.
All right, let' s move on. So, that' s kind of the one bond basic thing that I wanted to mention. Here' s another. Now, they' re kind of bond basics before we start actually looking at individual bonds. And that is, there' s, I don' t know if you' re like me, and I' m probably old enough; I think that they don' t really, I don' t know if they don' t exist or they' re not very common anymore. But when I was a kid and I' d go to a playground, there would be like see-saws, teeter-totters. You guys remember those? You know, one person is on one end and the other person is on the other. And you can go up and down on those.
If one end goes up, the other end goes down, okay? And there are loads of fun, but I suspect maybe they were a little dangerous or something. People got hurt. And so, they don' t, in the U. S., at least, they don' t really put them on playgrounds anymore from what I can tell. But bonds, that is related a lot to bonds because one thing, one of the basics on bonds is, when you Re talking about bonds, the price of the bond itself is kind of this seesaw with the yield on the bond, okay? So, as the price goes up, yields go down. As yields go up, prices go down, okay? They' re inverse relationship there with one another.
And so, if you look at what we' ve seen in the market over the past couple of years, let me go to another page here. And let me just go to U. S. markets. And we' re going to scroll down. And I just want to show more because it gives you a pretty big view here. And one thing you can see down here is like a 10-year treasury index. That' s a measure of the yield. So, if you look at the 10-year note, that s kind of a pretty standard thing we look at in the market in terms of what are yields doing? Well, we look at the 10-year note. There' s a lot of different duration treasuries out there you can look at, but that' s kind of a standard one.
And what you' ll see is it says $39. 97. And the way to read that is, no, the interest rate is not 39%. You actually just move the decimal point over a spot. So, we look at the 10-year note. It' s $3. 997. That' s what that interest rate is there. So, yeah, in the chat, SJS said it' s now under four. This is just a little bit, but it is under four here. Let' s pull this up here, though. Let' s pull up a full graph of this. And let me pull that up here. And let me go to a little bit longer term here on this graph. Let' s pull this up here. Here. So, what you can see is you can see, well, where was COVID?
COVID was back here, right? We had very low interest rates during COVID. And then, really, for the last two, three years, we' ve had this march up in interest rates. And that is, you know, that' s something you' ve seen. If you' ve looked at mortgage rates, they' ve gone up. This is not the mortgage rate, but, you know, the general direction of this tends to go, of the 10-year, tends to go. The general direction of mortgage rates, as well. What we' ve seen is we ve seen a little bit of a drop in those interest rates. One of the concerns is, as interest rates go up, economic activity gets a little bit suppressed. And what can happen is that suppression of economic activity can actually lead to a recession.
And if you listen to, you know, the talking heads right now, so to speak, what you' re going to hear is a lot of people talking about recession, potential recession. And thus, a desire for lower interest rates. And we' ve seen some lower interest rates here. The Federal Reserve actually can take measures to try and control what the interest rate is. Although, when you hear about the Fed cutting the Fed funds rate, it doesn' t directly affect the 10-year note. It' s a shorter term, but there tends to be a, I don' t know the term, a trickle-down effect, so to speak, on the longer-term notes, as well. But in this case, yeah, we have seen rates come down a little bit. And one concern about getting rates down lower was inflation.
And, you know, if you think back over the past couple of years, what has your concern been? Well, I' ll tell you, for me, one of my concerns has been inflation. Right? But it' s kind of that same, kind of another teeter-totter thing of where we were concerned about inflation versus inflation. economic activity. So we' re trying to balance it here. But we' ve seen a drop in interest rates here. Now, let' s think about that in terms of your decision of whether to invest in bonds or how much to invest in bonds. If you think interest rates are going to continue to go down significantly, significantly, let' s say you thought that, that' s the yield, remember, what would happen to bond prices? Well, remember that correlation thing I talked about?
Or should I say inverse correlation? Then if interest rates were to continue to go down, what you' Expect, at least in this graph, which is, this is a graph of the TNX or the 10-year, you' d expect bond prices to go up. Bond prices go up. Now, if you' re investing, right now, you could go and you could get what by the, well, we' ll look over the last five years, at least, is a fairly high rate. Historical standards, though, are different. And there' s certainly been times in history where rates have been much higher than they are. We' ve kind of gotten used to this lower interest rate environment here. But I guess my point here on this, and I m not going to go into too much detail on this, is your decision of how much to invest in bonds may partially come down to what your forecast is for interest rates.
Okay, that' s one thing. Now, it' s more to it than that, because remember, there' s portfolio diversification or asset allocation purposes. And historically, going back over time, we' ll say going back over, you know, the past 100 years or so, bonds have underperformed. The stock market, the S&P 500, in terms of annualized returns. However, they also tend to fluctuate less. There' s lower standard deviations, lower volatility, historically, with bonds. And therefore, one reason people put it in their portfolio is to lower the volatility of the portfolio, yet still get some returns there. Now, I don' t know what the future is going to hold, but I don' t know what the future is going to hold, but I don' t know what the future is going to hold.
So, I' d say, you know, a lot of asset allocation models are still going to have a lot of investors in bonds at this point. Okay. Now, there are other asset allocation routes you can take as well, not just bonds. Bonds are going to be what I' m focusing on today. But SJS Photography said, hey, look, you know, some people invest in precious metals, right? Gold, for example, or they' ll invest in other parts. Real estate, maybe, or other commodities, maybe. They all factor into that asset allocation equation there. But this is, I think this is an important thing. Now, remember, this is the TNX graph. And if we look at other graphs, they would look very different here. In fact, corporate bonds. Remember, corporate bonds, you know, I guess there' s no guarantee of repayment on Treasury.
The U. S., you know, the U. S. government backs them. And, you know, theoretically, they could default. Most people view it to be a very conservative, safer investment for U. S. Treasury- backed bonds. But when you start to get less conservative, then you start worrying about the creditworthiness of the institution. Even in municipal bonds, there' s been instances of munis, municipalities, defaulting as well there. Now, I want to go and I want to talk about investing in, investing in bonds here. But before I do so, let me mention, you know, my goal today isn' t to have you all go out and invest in bonds right now, right? Or buy individual bonds. I want to start the process of educating you.
But I also want to tell you where you can continue to go and continue with more education on this. And I also want to give you some resources here regarding that. So one place you can always go is you can go up under ' Learn' and you can go to ' Bonds' right there. Learn bonds. Click on that. And it' s going to come up. You have different articles on bonds, videos on bonds. And you can go up to learn bonds. And you can go to learn bonds. And you can go up to learn bonds and podcasts. Okay. Including a mid-year fixed income outlook. Okay. So that was a mid-year outlook. And they do these podcasts occasionally. These are a little longer, getting into a little bit more, a little more depth here on that.
But, you know, some of these are real. I mean, that may be a little bit more, I don' t know. Some of these are maybe a little bit more advanced. But some of these, you know, bonds versus stock. Who issues bonds? Investing banks. Investing banks. Investing banks. Those are pretty basic things that you may want to check out if you want to learn more about bonds. And some of them are real quick. It can be very quick videos. The other place I want to point out to you is if you go to courses. You guys familiar with courses? If you click on courses, we have different courses. One of the courses here is called income investing. And it' s not all on bonds. But if you click on the income investing course, it talks about dividend stocks.
There' s bond foundation here. It goes all through bonds. You can go at your own pace, bond analysis, and you can go through this. So there' s a good chunk of that course on bonds itself. And I think that' s something that is probably important. You know, something that you may find of interest there for you. One other thing I would mention is this. If you go to products and click on bonds, right? Okay. It has, again, some more information. But it also has, if you go down, it gives you the choice to talk to a fixed income specialist. Schwab has fixed income specialists. We know that investing in bonds can be daunting for some investors. And so one choice is you can contact a fixed income specialist.
Here As a phone number if you like, 877-906-4777. If you' re interested. And you can give them a call. You can also fill out a form. Okay. And have somebody contact you if you prefer that. And there' s another approach that you can take. And that is one that I' m not going to get into much today. However, let me just mention this. There are bond funds and bond ETFs. Helping me out in the chat today is Connie Hill. And she teaches a class on bonds. And she teaches a class on bonds. And she teaches a class on bonds. And she teaches a class on ETFs. So if you want to learn more on ETFs, what you can do is you can go to her class on ETFs, which if memory strikes me correctly at, I think, Mondays at four o' clock Eastern time is Connie' s Trading ETFs.
So, you can check that out. And that way, just like with stocks, you don' t have to pick individual stocks. Sometimes bonds, you can do, you can do a similar thing. And that' s all I' m going to talk about bonds or ETFs today though. Okay. So that' s the, that' s the class we want you to, I would encourage you to check out in that class because we can' t record ETF classes. They are, make sure you check, get it, get it live. Check it out live. Okay. Four o' clock Monday, four o' clock Monday. All right. Let' s talk about actually trading these. How could you talk about these? So what you can do is you can go to the trade, click on trade. What do you have?
Voila, you have bonds. You can click on bonds and notice it gives you the choice of treasuries or corporates. It gives you, it' s a similar table to what we saw before, but let me click right on here. I' m going to just, we' ll go out five years here on treasuries. I' m going to click on this and, when you click on that, it' s going to give you some potential treasury bonds. Now, one of the things is with bonds, there' s a new, there' s a whole different, uh, vocabulary, I guess, on some of these. So let' Just talk about some of the terms it' s, you know, I' m not going to be super, I can' t go over everything today, but let' s talk about some of these categories here.
Okay. And this is a page I just clicked. I clicked on buy. So it' s given me the choice to buy these. You can click on those. If you want to start the process of buying a bond, this tells you what it is. And it tells you the maturity date, which is right there. Okay. There' s the maturity date. And I clicked on five years. So these are all going to be in the order of five years from maturity. This 4% here, or you can see it here is the coupon rate. That' s the stated interest rate. Okay. That So is the stated interest rate on that. But remember what I said earlier about how bonds, uh, the yield changes as the price goes up and down.
So as the interest rates go up, bond prices go down as interest rates come down, bond prices come up. So that affects all these bonds on the secondary market. And so right now, if you buy this bond, you need to pay a premium on it. So if you buy this bond, you need to pay a premium on it. So if you buy this bond, you need to pay a premium on this because a par value bond would be 100, 100 right on the nose would be a par value. So you' ll notice none of these are trading exactly at 100. Theoretically they could, but, uh, that means that this is probably a little bit higher than the prevailing rate here on this.
Not much, because it' s not a big difference on this duration bond, which is about five years out. Remember we were looking at, uh, at a 10-year bond, which is about five years out. We were looking at a 10-year bond earlier and we said it was just a smidge under the, the 4% rate. Well, this is, this is a little bit under that rate as well. About three, this is YTM). Okay. So there you go. Okay. There' s your quantity. Minimum is one, but, uh, basically par value, um, is, is a little bit more than this is trading a little bit of a premium, as I mentioned before. Now, what' s this accrued interest? That' s kind of a weird column. What' s that?
Well, bonds pay, typically bonds pay their coupon semi-annually. Okay. Twice a year, twice a year. It' s not like a stock dividend. Remember, stock dividends typically are paid quarterly. Bond coupons are paid semi-annually. And if it' s been a little while since they' ve paid, it' s, uh, there' s some interest that you' re going to receive on the next interest payment that you' re not having to hold the bond for the full six months on that. Okay. Because we' re past that six- month part. So you have to pay a little bit extra to get this bond $274 here, uh, extra there. So in any case, this is the bond table. You can see different offerings, different, because I clicked on the five-year, these are all roughly five-year expiration.
You can see the different interest, the different coupon rates, but here' s an example of one with a lower coupon, 2. 3%. This one was issued when bonds were a lot cheaper, excuse me, the yields, the yields were a lot lesser than, than what they are now. And so not super attractive right now to buy something with a 2. 3% interest rate, right? Because interest rates are higher than that. However, you know what? You get a discount on it, right? You don' t have to pay that; a hundred dollars is $93. 60. Okay. So that' s how, how that, uh, that works now. Um, let' s go and, and there, there' s a quantity available. Uh, these are all ask prices because they' re, these are what they' re offered for to you.
Um, and there we go. So let me get out of this and let me just show you, I want to show you some more stuff here. Okay. So that' s how you can, you can do these. And what you could do is you can click on buy. And, uh, I actually can' t do this in this particular account. So it' s not gonna let me do that right now. Now, of course, you' re not limited to treasuries and I want to show you corporates here in just a moment. So I' m going to click on buy and I' m going to click on buy. But I also want to show you something else. And that is what' s called a treasury ladder or a bond ladder.
What a bond ladder is, is when you buy, when you buy bonds, okay. Um, when you buy bonds, there' s an interest rate risk, right? You can buy a bond. You can for a certain price at a certain Or maybe the yield goes up over time and you want another bond over the future. And so if you just buy one bond with one maturity, what happens is, uh, there, you can really get, your fortune can really change just by the luck of the draw of when you happen to buy that bond, that one individual bond. To smooth it out, what we can do is buy a bond ladder. And let me tell you about that in just one sec. Now, so the question in the chat, SGS, anybody in tax?
Oh, I can' t get into tax information on that. Okay. Sorry. I misread your question there. Yeah. But the interest rate difference here is typically is just when those bonds are issued as to account for the different interest rate there on that. Yeah. Connie and I can' t get into the tax implications of that, but that One reason we have a fixed income specialist to help us out as well on that. All right. So, let' s go to, notice there' s this right here on this page, Treasury Ladder Builder. Okay. So, let me get back to what a treasury ladder is. Okay. So, what if we did this? What if we bought a bond right now? Okay.
And you' re going to have a bond that' s going to be a bond that' s going to be a bond that' s going to be a bond that' s going to mature in a year. Okay. So, we' ll call that, we' ll call this time period Year Zero right now. And we buy it and it' s going to mature in a year. Okay. But you know what? I' m going to go out a few more years here. And what if at the same time we buy that one that So, going to mature in one year? What if we bought a two-year bond as well at the same time? Okay. And we bought a three-year bond at the three-year maturity and a four-year maturity and a five-year maturity.
Okay. Now what' s going to happen after the first year? Well, the first bond comes to maturity. So this is where we are now, but in one year, this one that says ' two' right now will actually mature in one year. This, that says ' three' will mature in two years and so on. But what you can do is you can then, you can then buy a new five-year bond out there. Okay. And that' s going to go. And that way you have a new bond maturing every year. Now the year mark, you don' t have to do the year mark. You can, you can do, you don' t have to go five years, but you can choose your bond ladder as to how far out you want to go with it.
And, uh, you see how you can just keep rolling it. Come year two, second year maturity, we' re going to buy a five-year bond. That' s seven years out. And remember, none of this stuff I' m talking about today is a recommendation. It is just an example, educational performance for you. So let' s take a look and see practically what that looks like on this website here. So what you can do is you can click on CD and bond ladder, and it I' m defaulting to a CD ladder, which is probably a subject for another time. Not right now. I' m going to click on treasury ladders and notice it gives you a one-year treasury ladder. And look at that one-year treasury ladder with four rungs.
They have them expiring every three months here. Okay. And a two-year treasury ladder, they have them expiring every six months. Well, I' m going to, let' s look at this five- year. Now you can, customize it to what you want. You can click on, customize your own and keep in mind, these are treasuries. So I' m going to click on that. And I' m going to say, I' m going to put in $10,000. Okay. And I' m going to choose an account. And I' m not going to t even know which account is which here on this, but let' s click and choose. Okay. And notice if you scroll down a little bit, it' s, it' ll fill up this information in just a minute.
But what I can see is this is rung one. So rung one is going to expire in about a year. So I' m going to click on this one. And I' m going to in about a year. Okay. So in about a year, and what I can do is I can put a check mark next to that. That' s my rung one. Okay. I can click on rung two, or I can click continue to next run and rung. It' ll do the same thing. And I' m just going to kind of click on these. I m not just to kind of illustrate rung four, remember, and rung five, rung five, when' s that going to expire? In about five years, rung four was going to expire in about four years. Okay.
And let' s, now, here we go. You can see the expiration on these. You can see the principal payment that would be due, the interest payment that would be due, each of these. Okay. Initial cost. Okay. We did $10,000 is, I input that to start. I mentioned that. I got to pay 34 in accrued interest, which isn' t a whole lot on $10,000 at this point. Par value is $10,000. Average coupon rate' s about three and a half percent there. Okay. And cash, cash flow. Why is it purchasing two? Because I did, because each one of these is, each one of these is $1,000. Okay. Five years, $5,000, but I' m investing $10,000. Here.
So if I invested $5,000, it would give me a quantity of one there on that. Okay. Hoping that' s making sense. And you can see the estimated cash flow goes through this estimated annual income and so forth. Remember, as year one expires, which would be right here, I get the principal due and I get a little interest. In the, every six months, nothing' s expiring every other six months, but I am. I' m still getting the interest payment on those. Okay. I' m still getting the coupon on those. All right. So that' s a, that s a ladder. Now you can do a ladder on, you can do a bond ladder on corporate bonds as well, if you want. Okay. Now, before I run out of time, let me just kind of mention corporate bonds.
Let me go on back up to trade. I can go to bonds, click on bonds, and I can go down to, corporates and do a similar thing. I can go to AAA corporates. We' ll go out, I don' t know, three years, see if they have what they have available. Here' s some three -year bonds, Microsoft, Johnson and Johnson, Andrew Mellon foundation. And you can see now, one thing I did not mention about bonds is some bonds are callable. What that means, don' t confuse that with like options or anything. Bonds are callable, which means the issuer can just pay you your principal back early. They don' t have to hold it the whole duration. Why would they do that? Well, think about it. If interest rates go down, if interest rates go down and they could issue new bonds for a much lower rate where they have to pay a lot less, wouldn' t it benefit them if they could just take that bond back from you and not have to pay you the higher interest rate and issue a new bond to someone else? Well, I don' t know. I don' t know. I don' t know. I don' t know.
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I don' t know. I don' t know. I don' t When you hear a call on that, that' s what we' re talking about, that on corporate bonds. You can go through the same process, click on ' buy' if you want, and you can put in your order on that, review your order, and go through that. Now, one thing you' re going to notice is, as you' re looking at bonds, and I' m going to finish up with this, bonds are identified differently ways, right? You know, you could say, what' s the maturity date on the bond? Who' s the issuer? Government, muni, corporate bonds. You can try and find it that way. You know, there' s difference. But if you have a, bonds will come up, they' ll have a CUSIP number listed, okay, symbol listed.
And what you can do is, you can take that, if you have that and want to find it somewhere else. When you' When looking for bonds, what you can do is, you can look for that individual bond by the CUSIP number there, all right? So you can just, I' m just copying and pasting there, rather than search for a bond and pull it up, and now I know I have these Microsoft bonds that are available for me, okay? So you can look at bonds that way. You know, as I mentioned, this is not meant to be, uh, this is not meant to be an exhaustive class on making you a bond expert here or anything like this. This is meant to be an introduction to bonds. It can be an intimidating field for people.
But just remember, bonds have risks. They have interest, among other risks, such as like default risks, there So also interest rate risk with bonds, right? Interest rates can change and affect the price of your bond. Um, and so, you know, uh, just, just be aware of that. Now, I want to thank Connie for helping me on the chat today. Remember, check out her ETF class on Monday, uh, if you want to learn more about, looks like she' s covering fixed income ETFs on Monday. So, uh, appreciate you all. And um, what, uh, make sure you subscribe to Trader Talks, uh, channel on YouTube, YouTube Trader Talks. That way you don' t miss this content in the future, everybody. Okay? Bye. Bye. All right. Hey, everybody. Thanks for joining me today. Hope you all have a wonderful rest of the day, happy trading, and we' ll see you same time next week. Bye- bye, everybody.
