SIE Exam Question 859: Answer and Explanation

Question: 859

Which of the following is/are correct regarding registered bonds and bearer bonds?

(1) A registered bond is registered with the corporation or organization that issued the bond, and coupon payments are made to the owner of record.

(2) A bearer bond can be transferred like cash, and coupon payments are made to the person who holds the bond.

• A. (1) only
• B. (2) only
• C. Both (1) and (2) are correct.
• D. Neither (1) or (2) are correct.

Correct Answer: C

Explanation:

A registered bond is registered with the corporation or organization that issued the bond, and coupon payments are made to the owner of record. A bearer bond can be transferred like cash, and coupon payments are made to the person who holds the bond.