What distinguishes term bonds from other types of bonds?

Term bonds are characterized by their uniform maturity, meaning that all bonds within a series mature on the same date or very close to the same date. This feature simplifies the planning for investors looking to receive their principal back at a specific time, making term bonds particularly appealing for managing cash flows.

In contrast, other types of bonds, such as serial bonds, have staggered maturity dates. This allows for a more flexible investment strategy and cash flow management, but it doesn't provide the same predictability that term bonds do. The issuance levels of government do not inherently distinguish term bonds from others, as they can be issued by various entities. Additionally, while interest rates can vary based on market conditions and the issuing body's creditworthiness, term bonds do not consistently command higher interest rates compared to other bond types. Thus, the defining characteristic of term bonds is their shared maturity date, ensuring investors know when to expect the return of their investment.