Business and Personal Finance Dictionary

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• INTERMEDIATE-TERM BOND
  
  Intermediate-term bonds mature in two to ten years from the date of issue. Typically, the interest on these bonds is greater than that on short-term bonds of similar quality but less than that on comparable long-term bonds. The rule of thumb on bond interest is that the longer the term, the higher the interest paid. Intermediate bonds work well in an investment strategy known as laddering, which involves buying bonds with staggered maturity dates so that portions of your total investment mature in different years.
  
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