What is “non negotiable bearer bonds” and what would Hans Gruber have been able to to with all those bearer bonds?

Question

I was born in early 2000’s and have not heard yet in any form or type. Also I wonder how much would it worth in today’s currency?

In: Economics

Answer 1

Bearer bonds are a transferrable IOU, repayable on the stated date by “presenting” them at the bank acting as “paying agent”. Bonds have “coupons” attached to them, which are essentially tear-offs which entitle the holder to receive a small payment periodically, ie interest. You can “strip” the coupons, which are then separately tradeable, which has to be effect of turning the original interest bearing bond into one large non interest bearing bond and a number of separate, smaller interest receivables. This isn’t how the world works anymore, but you can find bonds issued by for example railroad companies which can be attractive because of the security printing. The die hard plot would not have worked because the police would be called as soon as Hans tried to present them for payment. “Negotiable” means transferable.