Not exact matches
By using the
bond ladder approach, you could buy five different
bonds each with a face
value of $ 10,000 or even 10 different
bonds each a with face
value of $ 5,000.
the dollar amount
of all interest earned on government and corporate debt obligations and short - term certificates
of deposit, as well as interest earned from cash in a brokerage account; for
bond ladders it represents the estimated annual income that will be received from the securities that make up the rung; the income is calculated by multiplying the coupon rate by the quantity
of bonds (face
value)
As it implies,
laddering refers to buying various increasing maturities
of equivalent -
value certificates
of deposit (CDs) or investment grade corporate
bonds.
For example, buying 5 -, 10 -, 15 -, and 20 - year maturity
bonds of equal
value would be a
bond ladder.