What Is The Basic Difference Between Bond And Debenture?


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Anonymous Profile
Anonymous answered
The bonds and debentures both are the financial institutions.
According to companies act 1956 India debenture includes stocks, bond and any other
• Securities of company whether constituting a charge on asset or not.
• Generally private sector companies issue debentures and public sector and financial Institutions issue bonds.
• Bond is a long term debt instrument that promises to pay a fixed annual interest over a Specific period.
• Debentures may be convertible into equity shares while bonds are not.
• Debentures may be redeemed in installment.
Al institutions.
Steven Vakula Profile
Steven Vakula answered
A Bond is a fixed note with interest payments guaranteed and a maturation date and is guaranteed. A debenture is similar but is unsecured and is not guaranteed with any specific assets of the company. It has a characterization of more along the lines of stock where as a bond is more a direct finance, loan, instrument.

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