Question

Bonds that are not recorded in the name of the bondholder are called ________.

1) Unsecured bonds
2) Secured bonds
3) Convertible bonds
4) Municipal bonds

Answer 1

Bearer bonds are the type of bonds not recorded in the name of the bondholder and can be transferred simply by physical possession. They are different from secured, unsecured, convertible, and municipal bonds.

Step-by-step explanation:

Bonds that are not recorded in the name of the bondholder are called bearer bonds. These types of bonds are different from the ones discussed, such as secured bonds, which are backed by collateral, unsecured bonds, which rely on the issuer's creditworthiness, convertible bonds, which can be converted into a predetermined number of shares of the issuing company, and municipal bonds, which are issued by cities or other local governments. Bearer bonds are transferable instruments, and because they are not registered to a specific owner, whoever possesses the physical bond document is considered the owner.

Bearer bonds are the type of bonds not recorded in the name of the bondholder and can be transferred simply by physical possession. They are different from secured, unsecured, convertible, and municipal bonds.