Question

This morning, Jeff found an aged bond certificate lying on the street. He picked it up and noticed that it was a 50-year bond that matured today. He presented the bond to the bank teller at his local bank and received payment for both the entire principal and the final interest payment. The bond that Jeff found must have been which one of the following?

Answer 1

Answer:

Bearer-form bond

Explanation:

A Bearer-form bond is a kind of security bond where the records for the ownership of the bond is not recorded. Also the financial transaction done are also not kept as record. In this type of bond, the security of the bond is payed, after maturity, to the bearer or the one who possess the bond.

In the context, Jeff found a bond on a street and went to the bank to receive the payments as he found that the bond  matures today. Such type of bond is known as a bearer bond where the payment is made to the person who possess the bond.

Thus the answer is -- Bearer-form bond