Term Bond

A term bond is a bond which is issued with a fixed maturity date. All of the bonds in an issue of term bonds mature on the same date.

Example: A company issues a term bond with a 10-year bond term on a specific date. All of the term bonds in that issue will mature exactly 10 years from that date.

A term bond differs from a serial bond, which is issued in a series with each issue maturing on a different date.

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Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.

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