Coupon Bonds vs Registered Bonds

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on July 05, 2023

Some bonds are known as bearer bonds or coupon bonds. These bonds are not registered in the name of individual holders; instead, they are negotiable by whoever holds them.

To receive interest payments, the current holders simply clip off a coupon and redeem it at an authorized bank.

Because coupon bonds do not offer much safety to the holder, most currently issued bonds are registered.

This means that the bonds are registered in the name of the holder and that all interest payments are made by the issuing company directly to the current bondholder.

Coupon Bonds vs Registered Bonds FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.