Final answer:
Registered bonds are bonds where the identities of the owners are recorded, allowing automatic coupon interest payments to be made, unlike bearer bonds that require physical presentation of coupons.
Step-by-step explanation:
The type of bonds where the identities of bond owners are recorded and the coupon interest payments are sent automatically are called registered bonds. Bonds are debt securities under which the issuer owes the holders a debt and is obligated to pay interest, known as the coupon, and to repay the principal at a later date, known as the maturity date. When interest rates fall, existing bonds with higher rates become more attractive, leading to an increase in their value. Conversely, when interest rates rise, these bonds become less appealing, and their value may decrease. Registered bonds make it easier for the issuer to manage payments and maintain records, as contrasted with bearer bonds, which are anonymous and have coupons that must be presented physically by the holder to receive payment