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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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Difference between stocks and bonds?

stocks are stocks and bonds are bonds . flatout -ashes


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 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 is the difference between taxable and tax-exempt bonds?

Taxable bonds are subject to federal income tax on the interest earned, while tax-exempt bonds are not subject to federal income tax on the interest earned.


How is interest paid on debentures is shown in Financial statments?

interest paid for debentures is a/an

Related Questions

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.


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


Do ionic bonds have a greater or lesser electronegativity difference between them than a covalent bond?

The difference in electronegativity between two elements bonded into a compound by ionic bonds is almost always greater than the difference in electronegativity between two elements bonded into a compound by covalent bonds.


What is one key difference between stocks and bonds?

One key difference between stocks and bonds is that stocks represent ownership in a company, while bonds represent debt owed by a company or government.


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.


What are the benefits in a Demat account?

A Demat account is parallel to a bank account through the difference being that in its place of money, it is the securities that have been put in electronic outline. Securities are in the type of shares, bonds or debentures.


Nonpolar bonds show what electronegativity difference between atoms?

Nonpolar bonds occur when the electronegativity difference between atoms is less than 0.5. Electronegativity measures an atom's ability to attract electrons in a chemical bond. In nonpolar covalent bonds, atoms have similar electronegativities, resulting in equal sharing of electrons.


What is the difference in the bonding between carbons atom in carbon dioxide and butane?

Butane has bonds between carbon atoms.Carbon dioxide hasn't bonds between carbon atoms.