Serial bond
Encyclopedia
Serial bonds are financial bonds
that mature in installments over a period of time. In effect, a $100,000, 5-year serial bond
would mature in a $20,000 annuity
over a 5-year interval. Bond issues consisting of a series of blocks of securities maturing in sequence, the coupon rate
can be different.
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
that mature in installments over a period of time. In effect, a $100,000, 5-year serial bond
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
would mature in a $20,000 annuity
Annuity (finance theory)
The term annuity is used in finance theory to refer to any terminating stream of fixed payments over a specified period of time. This usage is most commonly seen in discussions of finance, usually in connection with the valuation of the stream of payments, taking into account time value of money...
over a 5-year interval. Bond issues consisting of a series of blocks of securities maturing in sequence, the coupon rate
Coupon (bond)
A coupon payment on a bond is a periodic interest payment that the bondholder receives during the time between when the bond is issued and when it matures. Coupons are normally described in terms of the coupon rate, which is calculated by adding the total amount of coupons paid per year and...
can be different.