A bond ladder is a useful tool for taking advantage of the higher rates that come with longer maturities while obtaining a regular cash flow.

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A bond ladder is a strategy where an investor divides their investment into bonds with different maturities. As each bond matures, the principal is reinvested in new bonds at the longer end of the ladder, potentially capturing higher yields of longer maturities while ensuring regular cash flow from the bonds maturing in the short term.

A Bond Ladder Is a Useful Tool for Taking Advantage