term bonds

Term bonds

Bonds whose principal is payable at maturity. Often referred to as bullet-maturity bonds or simply bullet bonds. Related: Serial bonds.

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term bonds

Any of various bonds that mature on the same date. Corporate bond issues are often of the term variety because all the bonds of a given issue are scheduled to mature simultaneously. Municipalities often issue a combination of serial and term bonds with periodic retirements of serial bonds and then a redemption of a block of term bonds during the final year. See also serial bonds.