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bearer bond

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

A bearer bond is a bond that is not registered in its owner’s name. The person holding the bond is presumed to be the owner of the bond. The interest on a bearer bond is received by clipping one of the dated interest coupons which are attached to the bond and presenting it to a bank for collection. This is the reason a bearer bond is also referred to as a coupon bond. Today, bearer bonds are almost nonexistent.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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