Serial Bond

[SEER-ee-uhl bond]

What is the definition of Serial Bond?

A type of bond issue, often utilized by municipalities, that is structured with various maturity dates scheduled at regular intervals until the entire issue is retired.

Using Serial Bond in an Example

A city issues a serial bond to fund the construction of a new public library. The bond is structured to mature in increments over a 20-year period, with a portion of the principal being repaid each year. This allows the city to manage its debt repayment gradually without a significant financial burden at any single point.

Using Serial Bond in a sentence

The finance director explained that using a serial bond would enable the city to finance the new road infrastructure without imposing a heavy debt load in any single year.

Related Terms

Surviving Spouse

A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.

Learn More

Swap

A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.

Learn More