What is a characteristic of Serial Bonds?

The characteristic of serial bonds that distinguishes them is that they mature in installments over a period of time, rather than having a single maturity date. This means that a portion of the total bond issue matures each year, allowing the issuer to pay back the principal in smaller amounts rather than as one lump sum at maturity. This feature can provide a more manageable repayment schedule for the issuer and align with the expected cash flows from projects financed by the bonds, making it a practical financing solution for long-term capital needs.

In contrast, a single maturity date is typical of term bonds, where all principal is repaid at once at the end of the bond's term. Full repayment upon issuance is not applicable to bonds generally, as that would imply an immediate cancellation of the bond's debt. Lastly, while many bonds may be backed by specific projects or capital improvements, this is not a defining characteristic of serial bonds specifically, as they can be backed by various revenue sources.