What is the difference between registered bonds and bearer bonds?
A) Registered bonds have to be registered with the government of Canada, but bearer bonds do not.
B) Registered bonds generally pay lower rates of interest than bearer bonds.
C) Registered bondholders automatically receive interest cheques, but holders of bearer bonds have to clip coupons and send them to the company.
D) Registered bonds have lower financial risk than bearer bonds.
E) There is really no practical difference between registered and bearer bonds.

Question

Quizplus · Accepted Answer

Registered bondholders automatically receive interest payments through cheques, while holders of bearer bonds have to clip coupons and send them to the company to receive their interest payments.

What Is the Difference Between Registered Bonds and Bearer Bonds