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I have a 5-yr CD with PFCU and just sent money in for a 4-yr CD paying 4.65% APY. I'm trying to construct a 5-yr ladder with them.

Five year CD yields 5% for five years. Four year CD yields 4.65%.
5%-4.65% = .35%/yr x 4yr =1.40%. Over the four years you are giving up 1.40%. Worst situation with a five year CD is it has to be sold at the end of four years. The penalty is 6 months interest which would be 5%/2=2.5%. What you did is the best choice assuming the five year rate will be greater then 5% in five years. But isn't the situation: buy the 4 year and know that you lose 1.4% or buy the 5 yr and possibly lose 0.9% if you have to sell at the end of four years? How should one look at this?
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