Knowledge Center

CD & Bond Trading

Buying a Bond Ladder

1. Under the Trade tab of your Scottrade account, click CDs & Bonds in the left side menu.

2. To go to the Bond Center, choose the Use our Bond Laddering Tool on the CDs & Bonds default page or click Bond Laddering Tool from the Bonds tab drop-down box.

3. Complete the six-step bond ladder process.

Step One: Investment Type

Indicate whether you would like to invest in taxable or non-taxable (or both) in the drop down box.

Step Two: Select Bond Types

Check the box to the left of each type of bond you would like to invest in.

Step Three: How Much Do You Want to Invest?

Enter the monetary amount you would like to invest in your bond ladder.

Step Four: Investment Horizon

Decide the time length of your ladder, date of the first principal payment, and how many bonds you would like to build your ladder with by using the drop-down boxes offered.

Step Five: Safety Level

Choose a desired safety level based on the bond ratings chart.

Step Six: State

Depending on the criteria you have entered, you may be asked to enter the state in which you live (this is only relevant to municipal bond investing).

4. Click the purple Get Results button on the lower right side of your screen.

5. Select the bonds you wish to include in your ladder from the results offered.

6. Click Buy This Ladder to view an Order Form of your purchase.

7. Click the Review button on the right side of the screen to review all the sale information for accuracy.

8. If your order is correct, click Submit Orders to finalize the purchase of your bond ladder.

Bonds involve risks including, but not limited to interest rate risk, reinvestment risk, inflation risk, call risk, liquidity risk, credit risk, market risk, default risk, event risk and a risk of loss of principal. New issue offerings are sold by prospectus or offering circular available at www.scottrade.com. Investors should read these carefully.

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The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.