Bonds that mature at different dates with the result that the entire principal amount is repaid gradually over a number of periods are known as:
A) Registered bonds.
B) Bearer bonds.
C) Callable bonds.
D) Sinking fund bonds.
E) Serial bonds.

Question

Quizplus · Accepted Answer

Serial bonds mature at different dates with the result that the entire principal amount is repaid gradually over a number of periods. This is in contrast to term bonds, where the entire principal amount is repaid on a single maturity date, and to sinking fund bonds, where the issuer makes periodic payments into a sinking fund to accumulate funds that will be used to retire the bonds at maturity. Registered bonds refer to bonds that are issued and registered in the name of the owner, while bearer bonds refer to bonds that are payable to the holder and do not require registration. Callable bonds allow the issuer to redeem the bonds before maturity, typically at a premium to the face value of the bonds.

Bonds That Mature at Different Dates with the Result That