Which of the following definitions describes a serial bond?
A)Matures on a single date.
B)Secured only by the "full faith and credit" of the issuing corporation.
C)Matures in installments.
D)Supported by specific assets pledged as collateral by the issuer.

Question

Quizplus · Accepted Answer

A serial bond is a bond that matures in installments over a period of time. Each installment is called a "serial" and has a specific maturity date. This is different from a term bond, which matures on a single date. Choices A, B, and D do not accurately describe a serial bond.

Which of the Following Definitions Describes a Serial Bond