Anyone who is in physical possession of a bearer bond can collect interest payments and the face value of the bond at maturity regardless of whether or not they are the rightful owner.

Question

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Bearer bonds are not registered in the name of a specific owner, and thus can be transferred by physical possession. The person who holds the bearer bond can collect the interest payments and the face value of the bond at maturity, regardless of whether they are the rightful owner or not. This makes them attractive to investors who want to maintain anonymity or avoid government regulation. However, in recent years, the use of bearer bonds has declined due to increased regulation and concerns about money laundering and terrorism financing.

Anyone Who Is in Physical Possession of a Bearer Bond