serial bond

serial bond, in finance, bond in an issue for which the maturity dates are spread over a period of years so that a certain number of bonds fall due each year. The serial-bond system of debt retirement is widely used by states and municipalities in a number of countries and has tended to replace the sinking-fund system in public issues. The variety of maturities in serial bonds allows the issuer to sell to a wider class of investors. In comparison with sinking-fund bonds, serial bonds have a shorter average maturity.