difference between bebenture and bonds
Answers
Answer:
Bonds are backed by the asset of the issure whereas debentures are not secures by any of the physical assets or collateral. Debentures are issued and purchased only on the creditworthiness are reputation of the issuing party. The interest rate of bonde is generally lower than debentures.
Answer:
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difference between bebenture and bonds
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bonds
Bonds are secure in nature.
One can have bonds of a corporation, government agencies or it can be of any financial institution.
Bonds are less risky comparatively.
Bonds are less risky comparatively. Talking about liquidity bonds are at the first priority.
Bonds give you low interest, but it depends on the issuing body totally.
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bebenture
Debentures can be secure as well as unsecured.
On the other hand debentures are issued by private companies.
Whereas debentures are at high risk.
Whereas in the case of debentures liquidity can only be done after the bondholders are paid.