And pension funds

Most bonds used to be issued in bearer form — the owner was considered to be whoever

Possessed the certificates. The certificates could be passed from one person to another. Most

bonds now are fully registered: the owner’s name is on the certificate, and when it is sold it must

Be sent to the issuer for a transfer of title. With bearer bonds the interest is claimed by clipping off

Attached coupons and presenting them for payment to an agent of the issuing corporation or

Government agency. Because bearer bonds proved difficult to trace when they were lost or stolen,

The federal government has forbidden further issuance of them, but there are many outstanding

Bearer bonds that will not be fully redeemed until well into the 21st century. Registered bonds

Are more secure. They do not have interest coupons. The interest payments are made by check to

The registered bearer.

Bonds have different maturity rates. Short-term bonds mature in from one to five years, intermediate

Bonds in from five to ten years, and most long-term bonds in from 15 to 20 years. Longterm

Bonds are not necessarily held to maturity. It is to the advantage of the issuing company to

redeem them early. Thus many bonds have a call feature: the corporation has the right to call them