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Stage 19 · Lesson 4 / 10
Bond Laddering
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Bond Laddering

Coach Chad, thinking

Lesson 4: Buy bonds maturing every year. Reinvest the matured ones at the long end. Smooth the ride.

One big bond, or five staggered ones?

Go with your gut.

$50,000 in one 5-year bond, or five $10,000 bonds maturing in years 1 to 5. What does staggering buy you?