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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.

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5mo ago

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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 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.


Difference between bonds and debentures?

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.


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.


Difference between stocks and bonds?

stocks are stocks and bonds are bonds . flatout -ashes

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 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 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 difference between debt and debenture?

A debenture is a debt security issued by a corporation that is not secured by their assets, but rather by the corporations credit. Bonds are lOUs between a borrower and a lender. The borrowers are generally public financial institutions and corporations. The lender is the bond fund, or an investor.


What is the difference between collateral and pledge in the following sentence. Secured bonds are backed by a pledge of collateral?

There is not much difference between collateral and pledge. If you put something up as collateral, if you fail to pay the loan, the item that you pledged will be taken. Either word can be used.


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 type of bail is like a credit contract?

unsecured bonds


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.


How would you define debenture bonds?

Corporations with sound credit standing are able to issue bonds without pledging assets. Such bonds are called debenture bonds, or unsecured bonds.


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.