Series 6: 4.2.4. Bond Certificates

4.2.4. Bond Certificates

The principal that is printed on a bond certificate is called its par value. This is the amount the investor lends to the borrower (the issuing entity) when the investor buys the bond, and this is what the investor will be repaid at the bond’s maturity. Corporate bonds are normally issued in $1,000 denominations.

Registered bonds are certificates issued to the bondholder with the owner’s name printed on them and no coupons attached. Instead, the issuer’s transfer agent sends the bondholder interest when payments are due and the redeemed principal at maturity. Registered bonds can be transferred to another individual only after th