Which of the following statements regarding serial bonds is true?
A) They are likely to be issued by food companies.
B) They have shorter lives than term bonds.
C) They are strongly backed by the issuer's collateral.
D) The bonds do not all mature on the same date.

Question

Quizplus · Accepted Answer

The statement "The bonds do not all mature on the same date" is true. Serial bonds are issued with different maturity dates, so that the issuer can pay off small portions of the debt over time, instead of having to make one large payment at maturity.

Which of the Following Statements Regarding Serial Bonds Is True