Bearer Bond (Noun)
Meaning
A bond issued with detachable coupons that must be presented to the issuer for interest payments.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company issued a bearer bond to raise capital for its new project, allowing investors to receive interest payments by presenting the detachable coupons.
- The investor carefully clipped the coupon from the bearer bond and mailed it to the issuer to receive the quarterly interest payment.
- Bearer bonds were popular in the past, but their use has declined in recent years due to tax laws and other regulations.
- The company's bearer bond offering was successful, with many investors attracted to the flexibility of receiving interest payments through the detachable coupons.
- The investor had to physically present the bearer bond and coupon to the issuer's agent to receive the interest payment, which was a hassle.