Sunday, July 5, 2009

Registered Bonds Vs. Coupon bonds

Registered bonds are bonds where the owner of the bond is registered with the issuing company and the owner receive the interest each period directly from the issuer. Most corporate bonds are registered bonds.
if bond is not a registered bond, it is a coupon bond (or bearer bond). in order to receive the interest from a coupon bond, the bond owner must send a coupon to the issuing company. in a coupon bond, the issuing company does not know who owns the bonds, but pays the interest to whoever submits the coupon.

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