What is difference between bonds and debentures in tabular form?
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BONDS
Meaning:A bond is a financial instrument showing the indebtedness of the issuing body towards its holders.
DEBENTURES
Meaning:A debt instrument used to raise long term finance is known as Debentures.
Collateral :
B:Yes, bonds are generally secured by collateral. D:Debentures may be secured or unsecured.
Interest Rate :
Bond:Low
Debentures:High
Issued by
Bond:Government Agencies, financial institutions, corporations, etc.
Debentures:Companies
Payment
Bond: Accrued
Debentures:Periodical
Owners
Bond: Bondholders
Debenures:Debentures holders
Risk factor
Bond:Low
Debentures:High
Priority in reppayment at the time of liquidation
Bond:First
Debentures: Second
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