Which of the following statements regarding serial bonds is true?
A)They are the most common type of bond issued.
B)They have shorter lives than term bonds.
C)They are always backed by the issuer's collateral.
D)The bonds do not all mature on the same date.

Question

Quizplus · Accepted Answer

Serial bonds have different maturity dates, meaning not all bonds mature at the same time. This is different from term bonds, which all have the same maturity date. Serial bonds may or may not be backed by collateral, and they are not necessarily the most common type of bond issued.

Which of the Following Statements Regarding Serial Bonds Is True