Serial Maturity Debt
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A Serial Maturity Debt is an economic debt where a portion of the outstanding debt matures at regular intervals (redemption dates) prior to the debt maturity date.
- Example(s):
- a Government Revenue Bond with a serial component, such as:
- Town of Lake George's $17 million serial bond for a new wastewater treatment plant. [1]
- Warren County's $2.6M serial bond to finance the Bearch Roard (CRF1) Reconstruction [2]
- a Government Revenue Bond with a serial component, such as:
- Counter-Example(s)
- See: Settlement Date, Principal, Interest Rate, Serial Bond.
References
2016
- (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Maturity_(finance)
- (...) A serial maturity is when bonds are all issued at the same time but are divided into different classes with different, staggered redemption dates.
- In the financial press the term maturity is sometimes used as shorthand for the securities themselves, for instance In the market today, the yields on 10 year maturities increased means that the prices of bonds due to mature in 10 years time fell, and thus the redemption yield on those bonds increased.
2016
- (Investopedia, 2016) ⇒ http://www.investopedia.com/terms/t/termtomaturity.asp
- For many bonds, the term to maturity is fixed. However, a bond’s term to maturity can be changed if the bond has a call provision, a put provision or a conversion provision.