A ________ bond permits the issuing firm to retire portions of the bond issue at different predetermined dates.

Question

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A serial bond allows a firm to retire portions of the bond issue at different predetermined dates, usually in chronological order. This is different from a callable bond, which allows the issuing firm to redeem the entire bond issue prior to maturity, and a convertible bond, which allows the bondholder to convert the bond into shares of the company's stock. Secured bonds are backed by collateral, while municipal bonds are issued by state and local governments.

A ________ Bond Permits the Issuing Firm to Retire Portions