[i]* At the next maturity date we buy another 3-year bond. * etc. etc. * On January 1 of each year we always have three bonds maturing in 1, 2 and 3 years (with, usually, different yields).[/i] Just for the heck of it I wonder how the same rollover scheme would work with other instruments such as bank CD's? (
Certificates of Deposit usually for a fairly high minimum, with penalty if taken out ...