{"id":41665,"date":"2023-09-27T00:23:00","date_gmt":"2023-09-27T00:23:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=41665"},"modified":"2023-09-28T15:13:32","modified_gmt":"2023-09-28T15:13:32","slug":"what-are-bearer-bonds","status":"publish","type":"post","link":"https:\/\/businessyield.com\/bs-investment\/what-are-bearer-bonds\/","title":{"rendered":"WHAT ARE BEARER BONDS: Definition and How It Works","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

A bearer bond, like an ordinary bond, is a type of fixed-income security. In contrast, the holder (or bearer) of a bearer bond owns the bond instead of the registered proprietor. Beyond the above statement, you might ask, what are real bearer bonds really worth? Continue reading to find answers to these questions. Let\u2019s fly!<\/p>

What are Bearer Bonds?<\/span><\/h2>

Unlike standard bonds, bearer bonds are not registered as investment vehicles and are issued by governments or corporations. They are similar to conventional or traditional bonds in that they have a coupon interest rate and a time to maturity.<\/p>

In the late 1800s, these bonds were initially issued in the U.S. as a means of financing post-Civil War infrastructure. Due to the ease with which they could be moved, these investments became extremely common almost immediately. Because only a small number of certificates were required to issue billions of dollars in these bonds, the process of transacting was greatly streamlined. Similar bonds were also issued throughout Europe and South America, which were then used in their respective financial markets.<\/a><\/p>

When a bearer bond has attached coupons that can be redeemed by an authorized representative for biannual<\/a> interest payments, it is known as a coupon bond.<\/p>