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Difference betwen debentures and bonds
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Answer Posted / kamal
Debentures r issued by companies, having fxed rate of
return on it. Debentures are prior to get return than
equity,whereas bonds r fixed int. bearing securities issued
by RBI or GOVT. Rate on bonds is given after acccessing the
inflation rate,GDP & int. rates.
Debentures are pays periodical interest on the prinicipal
amount. after maturity date the principal paid back.
in Bond the Int Cant pay in a regular manner. the bond
mature, paid back principal+Interst amount
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