The typical form in which municipal bonds used to be issued. Ownership is not registered, so the holder is presumed to be the owner. Because bearer bonds are fully negotiable, owners should take great care to provide for their safekeeping. Bond A promise to repay a specified sum of principal on a stated date with interest. Book entry One of the increasingly common ways in which municipal bonds are issued.
Ownership is verified by confirmation and periodic account statements.
A bond that the issuer is able to redeem, usually at a premium, prior to the maturity date. Typically the first call date is ten years from the issuance date. COPs are typically secured by lease payments made by the municipal or governmental entity and are subject to annual legislative appropriations. The compound accreted value is used as a starting point in determining the value of zero coupon bonds. It includes all interest accrued from the time the bond was issued.