Compare
| Feature | Bonds | Stocks |
|---|---|---|
| What you own | A loan (you are the lender) | Partial ownership of the company |
| Income | Fixed coupon payments (predictable) | Dividends (optional, variable) |
| Upside | Limited (face value at maturity) | Unlimited (stock can keep rising) |
| Downside | Limited (default = partial/total loss) | Total loss possible |
| Priority in bankruptcy | Paid before stockholders | Paid last |
Formula
Current Yield = Annual Coupon / Bond Price
Try it
Open the **Credit** view in the Ledge to explore bond data. Look at how bonds are described by coupon, maturity, and credit rating.
Key insight
Check-in
You buy a 10-year bond with a 5% coupon at par ($100). Six months later, market interest rates have risen to 7%. What happens to your bond's market price?
Check your understanding
Sit with the ideas.
You buy a $1,000 bond with a 5% annual coupon. How much interest do you receive each year?
Why:
Try this in paper trading
Buy a bond ETF after the duration lesson
Pick a Treasury or aggregate bond ETF (e.g., IEF, AGG, BND, TLT). Paper-buy 50 shares. Journal what you expect the position to do if the 10-year yield moves up 100 bps versus down 100 bps.
Open paper portfolio →Practice mode — simulated trades, not investment advice.