Series 52: 2.2.1. Debt Service Structures

Taken from our Series 52 Online Guide

2.2.1. Debt Service Structures

With serial bonds, the maturities can be arranged to correspond to the expected costs and revenues of the funded project over the life of the bond issue. These different arrangements are called debt service structures, and there are three basic types:

• In a level debt service structure, the total amount (principal plus interest) paid each year is generally level throughout the life of the bond. Level debt service makes revenue projections and budgeting decisions easi

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