Get SHORT/INTERMEDIATE-TERM BOND

Intermediate, or medium-term, debt refers to bonds issued with maturity dates that are between two and 10 years.

Bonds can be classified ing to their maturity, which is the date when the company has to pay back the principal to investors. Maturities can be short term (less than three years), medium term (four to 10 years), or long term (more than 10 years).

Based on Fund Portfolio Duration Bonds mature in periods referred to as maturities, at which time proceeds are usually paid. Bond maturities typically fall into one of three categories:3. Short-term (one to three years, less than five years) Intermediate-term (four to 10 years) Long-term (more than 10 years)

Intermediate-term refers to a time horizon for investment or trading that typically ranges from several months to a couple of years. It is considered a middle ground between short-term and long-term investing.

Intermediate-term bond portfolios invest primarily in corporate and other investment-grade U.S. fixed-income issues and have durations of 3.5 to six years (or, if duration is unavailable, average effective maturities of four to 10 years).

Generally, a bond that matures in one to three years is referred to as a short-term bond. Medium- or intermediate-term bonds are generally those that mature in four to 10 years, and long-term bonds are those with maturities greater than 10 years.

A term is an intermediate (or innominate) term if the remedy for its breach depends on the effect of the breach at the time it happens.

Short-term bonds typically yield higher interest rates than money market funds, so the potential to earn more income over time is greater. Overall, short-term bonds appear to be a better investment than money market funds.