Question

With registered bonds the holder must prove US citizenship to receive coupon payments while bearer bonds...

With registered bonds the holder must prove US citizenship to receive coupon payments while bearer bonds can be held only by federal employees.

True False

Homework Answers

Answer #1

The answer is false for both. Registered bonds are those bonds where the owner gets registered with the issuer. The information of the owner which includes his name & other contact information are kept on file with the company with a view to make the coupon payment to the appropriate person.

On the other hand, a bearer bond is a fixed income security that is held by the holder other than the registered owner. Hence it can be held by anyone other than the registered owner.

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