Which type of bonds matures all at the same time, usually many years after issuance?

Term bonds are debt securities that are issued with a specific maturity date, at which point the principal amount must be repaid in full. This structure means that all bonds in the term bond category mature simultaneously, which contrasts with other types of bonds that may have staggered maturities or varying redemption schedules.

In the context of financing for governments or corporations, term bonds are attractive because they simplify cash flow management; the issuer knows exactly when the financial obligation will come due and can plan accordingly. Additionally, since all bonds mature at the same time, they often provide a predictable cash flow for investors, who receive their investment back in a lump sum at maturity. This feature is why term bonds are often utilized for long-term projects, as they align the repayment schedule with the expected timeline of revenue generation from the project.

This distinct characteristic sets term bonds apart from other types of bonds, such as serial bonds, which mature in increments over time, and convertible bonds, which can be converted into equity.