What is the difference between a debenture and Bond?
3 Answer(s)
oladimeji
Debenture: A type of debt instrument that is not secured by physical asset or collateral.
Bond: A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate
Sep 08 2015 11:24 PM
Bond: A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate
oladimeji
ebenture: A type of debt instrument that is not secured by physical asset or collateral.
Bond: A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate
Sep 09 2015 03:36 PM
Bond: A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate
Daniel Tutu
Debentures and bonds are types of debt instruments that can be issued by a company.The functional differences center around the use of collateral, and they are generally purchased under different circumstances.
Debentures have a more specific purpose than bonds. Both can be used to raise capital, but debentures are typically issued to raise short-term capital for upcoming expenses or to pay for expansions.
Oct 20 2015 10:46 PM
Debentures have a more specific purpose than bonds. Both can be used to raise capital, but debentures are typically issued to raise short-term capital for upcoming expenses or to pay for expansions.