I have been discussing this particular strategy here: Short Term Bond Ladder - South Gent | Seeking Alpha
I have decided to increase the size again.
Today, I participated in the 6 month treasury bill auction:
Auction Results.pdf (.59%)
The interest is the difference between the auction price and par value.
In a Roth IRA account, I also bought account the Anheuser Busch 1.25% senior unsecured bond maturing on 1/17/18:
I later added one more in my IB account where the commission is $1 per bond.
I now own four of those bonds.
FIRNA PAGE: Bonds Detail
I now anticipate that the short term bond/CD ladder will top out near $200K.
South Gent,
ReplyDeleteI took the Feb 2017 CD of Bank of China, New York. It is much better than cash sitting in the brokerage firm earning nothing. It is strange that the interest rate (yield to worst) seems to be getting lousier. I was hoping the rates will get better so I can roll over the bonds and CDs at a higher rate.