Bonds that mature at different dates and end up with the total principal repaid gradually over a number of periods are referred to as:
A)Registered bonds
B)Bearer bonds
C)Callable bonds
D)Sinking fund bonds
E)Serial bonds

Question

Quizplus · Accepted Answer

Serial bonds are issued with different maturity dates and the total principal is repaid over a number of periods, making them the best choice. Registered bonds are named after the investors and require the issuer to maintain a record of the bondholder's details so they can receive interest payments, call notices, and principal repayments. Bearer bonds are not registered in the name of the bondholder, and the owner holds physical possession of the bond certificate. Callable bonds allow issuers to call back the bond issue and repay it earlier than the scheduled maturity date with the specific call price. Sinking fund bonds are issued with a sinking fund provision that requires the issuer to make periodic payments into a separate sinking fund account to repay the bond principal.

Bonds That Mature at Different Dates and End Up with the Total