Serial Bond

Serial Bond

An issue of bonds that gradually matures at regular intervals until the whole issue matures. Corporate bonds are sometimes serial bonds. In these situations, a corporation issues bonds, which will mature at different times, and sells them to whatever person or institution will buy them. Serial bonds are most useful to finance a project with regular income streams with which to pay off the serials. Both municipal bonds and corporate bonds combine aspects of both term and serial issuances in which some parts of the issue mature at various times, but in which the bulk matures all at once. See also: Term bonds.