Which bonds mature on a single date?

• A. Term bonds
• B. Serial bonds
• C. Mortgage bonds
• D. Debentures

Answer: (A)

Think about how the principal is scheduled to be repaid. Bonds that mature on a single date have all of their principal repaid at once on that date, though interest can be paid periodically before then. This is the defining feature of term bonds: one maturity date for the entire principal.

In contrast, serial bonds retire portions of principal each year, over several dates, so they don’t mature all at once. Mortgage bonds and debentures describe collateral or credit status, not the timing of principal repayment, and they can be structured in various ways, including single-date or multiple-date maturities. So the bonds that mature on a single date are term bonds.