3min chapter

Many Happy Returns cover image

Dry Powder: Where to Park Your Cash

Many Happy Returns

CHAPTER

Bond Letters

A bond ladder is when you buy a sequence of bonds, a group of bonds. They mature with regularly spaced dates. When one matures, then you get your money back and the principal goes away. You're always earning whatever's on the yield curve at that time. And there's a magical effect in bonds called pull-to-par.

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