Definition of Bearer bond:
Bond whose owners name is not on record with the bond issuer. Interest accrued on bearer bonds is paid to whoever presents the attached coupons, and the principal is paid to whoever presents the bond for redemption. Ownership (title) of this type of bond can pass from hand to hand by simple delivery, just like a currency note or a bearer check. See also registered bond.
A bearer bond is a fixed-income security that is owned by the holder, or bearer, rather than by a registered owner. The coupons for interest payments are physically attached to the security. The bondholder is required to submit the coupons to a bank for payment and then redeem the physical certificate when the bond reaches the maturity date.
As with registered bonds, bearer bonds are negotiable instruments with a stated maturity date and a coupon interest rate.
How to use Bearer bond in a sentence?
- Bearer bonds are as vulnerable as cash to theft or loss.
- As their ownership is not registered, the owner of a bearer bond is the person in possession of it.
- The bearer bond is a physical certificate with coupons attached that are used to redeem the interest payments.
Meaning of Bearer bond & Bearer bond Definition