Final answer:
A bond issued in the name of the owner is called a registered bond. This type of bond is recorded by the issuer and interest is paid directly to the owner. Registered bonds offer security for bondholders as they are associated with the owner's identity.
Step-by-step explanation:
A bond issued in the name of the owner is known as a registered bond. Unlike bearer bonds, which are owned by whoever holds the physical certificate, registered bonds are recorded by the issuer and interest payments are made directly to the registered owner.
These types of bonds are linked to the owner's identity and cannot be transferred simply by handing over the certificate.
Whereas a bearer bond is anonymous and ownership is determined by who possesses the bond, a convertible bond can be converted into a predetermined amount of the company's equity, and an income bond pays interest only if the issuing company is profitable.
Registered bonds add an extra layer of security for the bondholder, as they are recorded and managed directly by the issuer or its agent.