Why ladders exist

What is the first step in building a ladder for spending?

• Find the highest-yielding maturity
• Write down each amount you'll need and its date
• Split the money into equal rungs

You hold a zero that matures after a bill is due, and rates have risen since you bought. What happens when you sell part of it to pay the bill?

• You get face value for the part you sell
• You sell at a lower price, so you must sell more face to raise the same cash
• Nothing changes, because zeros don't move with rates