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A debunture is an unsecured loan certificate issued by a company, backed by general credit rather than by specified assets. A bond is a debt investment in which an investor loans money to an entity that borrows the funds at a fixed interest rate.
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What is a debenture?
Debentures function more or less like bonds. One can also term debentures as a variant of bonds. Debentures are issued by a company which offers to pay interest in lieu of the money borrowed for a pre-specified period. In essence, it represents a loan taken by the issuer who pays an agreed rate of interest throughout the life of the instrument and repays the principal normally, unless otherwise agreed, on maturity. Bonds on the other hand are more secured than debenture. As a debenture holder, you provide unsecured loan (most of the times debentures are unsecured in nature) to the company. Debentures carry a higher rate of interest as the company does not offer any collateral to you for your money. For this reason bond holders receive a lower rate of interest but are more secure in nature.
Difference between stocks and bonds?
stocks are stocks and bonds are bonds . flatout -ashes
Difference between bonds shares and mutual funds?
The difference between bonds shares and mutual funds is in their definition. Bond shares refers to the individual shares that an investor owns in a company while mutual fund is the collection of all the stocks and shares in a company.
What are fertilizer bonds?
you mean what chemical bonds? it depends on the fertilizer, nor is the formula always available to the public Sounds like a cute nickname for D-grade or slightly above D-grade debentures--manure is a fertilizer, hence the reference.
How is interest paid on debentures is shown in Financial statments?
interest paid for debentures is a/an
What is the difference between bearer debentures and convertible notes?
Differentiate between a bearer debentures and convertible notes
What is the difference between yield and coupon rate?
The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
What are debenture bonds?
A debenture is a debt security, like a bond is, but unlike a bond a debenture is unsecured. However, the two terms are basically interchangeable--a lot of people call bonds debentures and debentures bonds.
What is the difference between a convertible bond and a convertible debenture?
A convertible debenture is a type of convertible bond. However, a debenture is unsecured debt, which means that there is no collateral for the bond. The alternative to a debenture would be a secured bond such as a mortgage bond that would be secured by real estate. If the company goes out of business, the collateral for the secured bonds would be used to pay off those bonds and the holders of the debentures would be paid from whatever is leftover. Most convertible bonds are debentures.
Nonpolar bonds show what electronegativity difference between atoms?
Nonpolar bonds show a Low electronegativity difference between atoms
What is the difference between bond and debenture?
BONDS DEBENTURES *bonds are more secure . * It is UN secure loan you offer to a company *bonds are non convert able * easy conferable . . * low interest paid to BH. * higher interest to DH. * Issued by public companies * Issued by private sector . * bond is long term debt instrument . * short term debt instrument .
What is the difference between treasury and corporate bonds?
Corporate bonds are issued by a company, Treasury bonds by the government
What is the major difference between ionic and covalent bonds?
The major difference between the two is: - Ionic bonds occur between one metal and one non-metal (such as sodium and oxygen) - Covalent bonds occur between two non-metals.
What is the difference in strength between atoms with ionic bonds and atoms with covalent bonds?
ionic bonds have strong bonds and molecular bonds have very strong bonds.
What is the difference between end bonds and side bonds?
end bonds are joined and side bonds are cross
What is the difference between ionic bonds and covalent bonds?
Ionic bonds are based on the electrostatic attraction of ions; covalent bonds are based on the sharing of electrons between two atoms.
What is the difference between strength and hardness?
The difference between strength and hardness is that the strength refers to the force that is present between the bonds. Strength attributes to how strong or weak the force between the bonds. Hardness refers to the nature of the force, which basically is how rigid or flexible the bonds between particles.
