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Chapter 19. Working with Bonds > Calculating Bond Principal at Maturity

Calculating Bond Principal at Maturity

If you use bonds as a buy-and-hold investment, you're probably aware of the investing maxim that you need to spread your maturity dates over a number of years. For example, if you're investing for retirement at age 55, don't buy bonds that mature only in the year you turn 55. Instead, buy some bonds that mature at 55, some at 56, some at 57, and so on.

The strategy is easy to monitor if you have just a few bonds, but most heavy bond buyers end up with dozens of bonds that mature at various dates over a number of years. Calculating the total bond principal that matures each year can be a daunting task. However, with the help of a worksheet and a few array formulas, you can get Excel to handle this chore for you.


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