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Bond Ladder vs. Treasury Bills
This chart compares the interest produced historically by three-month Treasury bills to the interest that could have been produced over the same period by a laddered portfolio of different Treasury notes and bonds. (Laddering a bond portfolio means splitting your investment equally among bonds maturing in each year covered by the ladder.) Historically, laddered portfolios may have produced lower volatility while also generating consistent liquidity through interest payments and proceeds from redemption.
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