You want to purchase bonds such that a fraction of them mature each year, which would provide you with vacation money. Your need may be best served by investing in the _________ bonds offered by a reputable corporation.

Question

Quizplus · Accepted Answer

Serial bonds are issued with different maturity dates, allowing investors to have a portion of their investment mature each year. This makes them ideal for someone who needs regular income or cash flow for a specific purpose, like a vacation fund. Sinking fund bonds may also be appropriate, but they typically involve the issuer setting aside money in a separate account to redeem the bonds at maturity, rather than having staggered maturity dates. Callable, unsecured, and mortgage-backed bonds do not necessarily offer the same benefits for someone looking for regular, predictable cash flow.

You Want to Purchase Bonds Such That a Fraction of Them