The redemption of a serial bond. Such a bond may consist of a series of bonds each with its own redemption date or redemption in installments. The bond issuer can build up a reserve of redemption payments instead of having a single redemption date with one large lump sum amount of repayment. The coupon rate for redemption date may differ from one bond to another within the same collection of bonds (i.e., single indenture).
The bond is called a serial bond because redemption occurs with a series of redemption payments.
