Module 1 · Lesson 3 · 7 min

What a bond ladder is

What you'll be able to do

  • Explain what a rung is and how a ladder's maturities are spaced.
  • Calculate the cost of a simple ladder and the share of it that comes back each year.
  • Explain why a ladder's yield sits between its rungs' yields and why staggering dates doesn't change credit risk.

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