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Step-by-step build — 4 steps. Also available as a print sheet.
Decide on an edge treatment — a router profile or a simple hand chamfer gives it a crafted look. Then sand the faces well, stepping through 150, 180, and 220 grit for the best result (150 minimum with a sanding block).
Choose your order: finishing first is easier, but drilling afterward can craze or crack the finish around the holes. Drilling first and finishing after gives the cleanest holes if you're willing to take the extra care.
Mark the peg positions evenly, drill holes to match your pegs' tenon diameter for a snug fit, add a little glue in each hole, and seat the pegs. Wipe any squeeze-out before it sets.
Apply a wipe-on poly or an oil-varnish like Arm-R-Seal — hardwoods like walnut look great with no stain. When cured, hang the rail with keyhole hangers or screws into studs, or anchors sized to the load you'll put on the pegs.