A serial bond
A) needs to only pay interest if the cash is available.
B) may pay higher than stated interest if there are excess profits.
C) must be backed by specific assets.
D) has portions of the total issue maturing at differing times.

Question

Quizplus · Accepted Answer

A serial bond has portions of the total issue maturing at differing times. This means that the bond is divided into multiple smaller bonds, each with its own maturity date. As each smaller bond matures, the issuer pays it off, which reduces the overall amount of debt outstanding.

A Serial Bond