Registered Bond

Bond that is recorded in the name of the holder on the books of the issuer or the issuer's Registrar and can be transferred to another owner only when Endorsed by the registered owner. A bond registered for principal only, and not for interest, is called a registered coupon bond. One that is not registered is called a bearer bond; one issued with detachable coupons for presentation to the issuer or a paying agent when interest or principal payments are due is termed a Coupon Bond. Bearer bonds are Negotiable Instruments payable to the holder and therefore do not legally require endorsement. Bearer bonds that may be changed to registered bonds are called interchangeable bonds.