Which type of bond structure allows for multiple maturities over time?

The option that allows for multiple maturities over time is the structure known as serial bonds. Serial bonds are issued with various maturities, meaning that parts of the bond will mature at different times rather than all at once. This structure is beneficial for issuers because it can accommodate future funding needs and manage debt service payments more effectively.

For example, an issuer may want to stagger repayments to ease the financial burden during certain periods, allowing for a balanced cash flow over time. This feature makes serial bonds attractive to both issuers and investors, as it provides flexibility for managing liabilities while offering varied investment horizons.

Other bond structures do not provide this characteristic. Term bonds, for instance, have a single maturity date for the entire amount, meaning that all principal is paid back at one time. Zero-coupon bonds do not pay periodic interest and are redeemed at maturity for their face value, so they also lack the multi-maturity feature. Convertible bonds allow holders to convert them into stock under certain conditions, but they do not inherently offer multiple maturities.