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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Bearer bond  

Definition 1.

Bonds that are not registered on the books of the issuer. Such bonds are held in physical form by the owner, who receives interest payments by physically detaching coupons from the bond certificate and delivering them to the paying agent.
 

Definition 2.

An unregistered, negotiable bond on which interest and principal are payable to the holder, regardless of whom it was originally issued to. The coupons are attached to the bond, and each coupon represents a single interest payment. The holder submits a coupon, usually semi-annually, to the issuer or paying agent to receive payment. Bearer bonds are being phased out in favor of registered bonds. also called coupon bond.
 
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