A bond that is not registered in the name of the one who owns it. The principal to be paid at maturity goes to whoever holds the bond. Since the issuer has no record of the owner, the owner must collect the bond’s earnings by sending in the coupons that come attached to the bond. Bearer bonds ceased to be issued after July 1, 1983 due to the IRS’ problems collecting taxes on the earnings. Now the owner’s name is included on the bond and registered by the issuer.