Bearer bonds are also known as coupon bonds. These are bonds that are physically held by the owner of the bonds rather than registered electronically, like most bonds. Bearer bonds were first used in the late 1800s as a way to carry large amounts of money without carrying cash. They were subsequently banned in the U.S. in 1982 due to misuse; however, they are still used widely in Central America. Bearer bonds have coupons that must be torn off and sent in to collect payment.
Examine the face of the bond. Determine the company that issued it. .
Contact the investor relations department for the company to speak to a bondholder relations representative. Ask where to send coupons in order to cash the bond. This is also referred to as the processing department.
Contact your banker. If you cannot find the company or contact its investor relations department, your bank might cash the bonds for you. Ask for the fixed-income department and be ready to fax a copy of the bearer bond along with all the coupons. Since bearer bonds don’t have to be cashed by the purchaser, anyone can cash the bond for you and most bankers will do so after verifying the authenticity of the bond. They will also charge a fee.