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What is the difference between secured and unsecured bonds?

Secured bonds are backed by specific assets, providing investors with collateral in case of default. Unsecured bonds, on the other hand, do not have specific assets backing them, relying solely on the issuer's creditworthiness.


What companies have to issue bonds that are collateralized?

Companies with low credit standing often issue secured bonds, for which specified assets have been pledged as collateral.


Which bonds will have the higher coupon rate a secured debt or a debenture?

i guess debenture, since its more riskier!


What is the Difference between a general obligation bond and revenue bond?

General Obligation Bonds (GO Bonds): Backed by the general taxing power of the issuing government, considered lower risk, used for a variety of public projects, and often require voter approval. Revenue Bonds: Backed by revenue from specific projects, considered higher risk, used for specific revenue-generating projects, and typically do not require voter approval. Understanding the differences between these bonds is crucial for investors and municipalities alike, as it influences the risk, return, and legal requirements associated with financing public projects.


What do you mean by debenture and bond?

A debenture is a type of long-term debt instrument that is not secured by physical assets or collateral but is backed by the issuer's creditworthiness and reputation. Bonds, on the other hand, are broader financial instruments that represent a loan made by an investor to a borrower, typically a corporation or government, and can be secured or unsecured. Both debentures and bonds pay interest to investors, but debentures often come with higher risk due to their unsecured nature.

Related Questions

What is the difference between secured and unsecured bonds?

Secured bonds are those bonds on behalf of which company has pledged some kind of assets security in bank for refund of bonds while unsecured bonds are reverse of secured bonds which means these bonds don't have the security of any assets for refund.


What is the difference between secured and unsecured bonds?

Secured bonds are backed by specific assets, providing investors with collateral in case of default. Unsecured bonds, on the other hand, do not have specific assets backing them, relying solely on the issuer's creditworthiness.


What companies have to issue bonds that are collateralized?

Companies with low credit standing often issue secured bonds, for which specified assets have been pledged as collateral.


Which bonds will have the higher coupon rate a secured debt or a debenture?

i guess debenture, since its more riskier!


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 a general obligation bond and revenue bond?

General Obligation Bonds (GO Bonds): Backed by the general taxing power of the issuing government, considered lower risk, used for a variety of public projects, and often require voter approval. Revenue Bonds: Backed by revenue from specific projects, considered higher risk, used for specific revenue-generating projects, and typically do not require voter approval. Understanding the differences between these bonds is crucial for investors and municipalities alike, as it influences the risk, return, and legal requirements associated with financing public projects.


How much are gm bonds worth if gm goes bankrupt?

They have many different bonds issued, representing and secured by different things and asssets...each will be worth different amounts ranging from very little, even nothing to almost or entirely full value.


What do you mean by debenture and bond?

A debenture is a type of long-term debt instrument that is not secured by physical assets or collateral but is backed by the issuer's creditworthiness and reputation. Bonds, on the other hand, are broader financial instruments that represent a loan made by an investor to a borrower, typically a corporation or government, and can be secured or unsecured. Both debentures and bonds pay interest to investors, but debentures often come with higher risk due to their unsecured nature.


What is the price range for a secured personal loan?

A secured personal loan is a fixed interest rate loan in which you provide collateral or savings account, stocks, bonds, etc. to receive the loan. The price range depends on how big your loan is and what you have to put up for collateral, so there is no fixed price range.


What is a secured loan?

what is a secured loan


What is the difference between collateral and mortgage?

Typically a mortgage is a loan secured by real property (land!) and collateral is personal property (jewels, bonds, valuables, etc.) used to secure a loan.


What are some examples of items that could be used as collateral for a secured loan, such as a car or a piece of jewelry?

Examples of items that could be used as collateral for a secured loan include vehicles, real estate, valuable jewelry, stocks, bonds, or other high-value assets that can be used to secure the loan in case of default.