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Author: sazani Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5068  
Subject: CD ladder vs Bonds Date: 10/14/2004 9:20 PM
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1. Fixed income portfolio with MMFs and Bond ETFs:

20% MMF
40% AGG (Intermediate-term bond)
40% LQD (Long-term bond)

Weighted annual yield: (0.2*1.00)+(0.4*3.17)+(0.4*4.72) is 3.24%

2. Fixed income portfolio with MMF and CD ladder:

17% MMF
17% 3moCD
33% 1yrCD
33% 2yrCD

Weighted annual yield: (0.17*1.00)+(.17*2.30)+(0.33*2.95)+(0.33*3.44) is 2.67%
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