Difference betwen debentures and bonds
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Answer Posted / kassahun t.
Debenture is issued by privite companies it has priorty
over equity share holders and the issuer has the obligation
to pay interes every year/semi annually and principal at
end of the period in aggreement.While bond is also long
term debt which is usually issued by govt/public/semi-
publicgovt.Its interest paid semi annually/yearly and
principal paid at end of period.So bond is more secured
because govt never buncrapt and shut down the existance.
(NB.this is my understandig)
| Is This Answer Correct ? | 20 Yes | 5 No |
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