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From http://www.investorwords.com

"coupon bond

An unregistered, negotiable bond on which interest and principal are payable to the holder, regardless of whom it was originally issued to. The coupons are attached to the bond, and each coupon represents a single interest payment. The holder submits a coupon, usually semi-annually, to the issuer or paying agent to receive payment. Coupon bonds are being phased out in favor of registered bonds. also called bearer bond. see also current coupon bond, full coupon bond, registered coupon bond, zero-coupon bond."

What are they?

IOU's from a corporate entity, just like a registered bond. Biggest difference is that, like a lotto ticket, they are bearer instruments. Whoever turns in the coupon to the paying agent gets the interest, and whoever holds the bonds at maturity gets the owed principal.

Where do you get them?

Any broker that handles bonds should be able to get them for you in the secondary market. They are, however, rare nowadays.

Are they like Money?

Not really.

What if you (God forbid) lose them? Can they be found?

This is a question for your broker. My guess is that, since its a bearer instrument, you'd be Out Of Luck if you *lost* the certificate. I also guess that if you were able to *prove* that the certificate had been destroyed (in a fire, for example) you could get a replacement, though it might not be easy.

Regards,

Creighton
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