Data Source and Methodology
All calculations are strictly based on standard financial formulas for bond laddering. For further details, please refer to the Fidelity Bond Ladder Tool.
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
The bond ladder calculator uses a simple division to allocate your total investment equally across the number of rungs:
Investment per Rung: \( \frac{\text{Total Investment}}{\text{Number of Rungs}} \)
Glossary of Variables
- Total Investment: The total amount you wish to invest across your bond ladder.
- Number of Rungs: The number of bonds or rungs in your ladder.
- Investment per Rung: The amount invested in each rung of the ladder.
How It Works: A Step-by-Step Example
For example, if you have $100,000 to invest and choose a 5-rung ladder, the investment per rung will be calculated as $20,000.
Frequently Asked Questions (FAQ)
What is a bond ladder?
A bond ladder is an investment strategy that involves purchasing bonds with different maturity dates to minimize interest rate risk and provide steady income.
How do I choose the number of rungs?
The number of rungs depends on your investment goals and risk tolerance. More rungs mean greater diversification but also more complexity.
Why should I use a bond ladder?
Bond ladders can help manage interest rate risk and provide predictable cash flow over time.
Can I adjust my bond ladder over time?
Yes, as bonds mature, you can reinvest the principal into new bonds to maintain the ladder.
What types of bonds are best for laddering?
Government bonds, municipal bonds, and corporate bonds are commonly used in bond laddering strategies.