Business and Personal Finance Dictionary

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• SERIAL BOND
  
  A bond that provides for the amount of debt to be divided into a series of different staggered maturities. For example, instead of issuing$10 million of 15-year bonds, a municipality may issue $10 million with $1 million maturing each year from the year 6 to the year 15. By issuing debt in serial form, the municipal issuer can match its need to redeem maturing debts to its cash flow. This form also enables the issuer to save money since the shorter-term bonds carry a lower interest cost than longer-term debt.
  
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