Difference betwen debentures and bonds
Answers were Sorted based on User's Feedback
Answer / vijay gawalkar
Hey Padmavathi the answer that u have given to wrong.
Debenture and bonds are similar except for one difference-
bonds are more secure than debentures.A debenture is an
unsecured loan you offer to a company. The company does
not give any collateral for the debenture but pays a higher
rate of interest to its creditors and bondholders are paid
low interest. In case of bankruptcy or financial
difficulties, the debenture holders are paid later than
bondholders.
| Is This Answer Correct ? | 249 Yes | 39 No |
Answer / anil kumar
Both are liabilities of the issuing company and have
priority claim over the shareholders.
While issuing bonds, the issuing company
specifies 'certain' assets as security against the issue.
In case of default by the issuing company, the bond holders
can first recover their dues from the proceeds of the
specified assets.
But when debentures a are issued, no specific assets are
marked as security, but the debenture holders will have
claim over all the assets of the compnay, except those on
which specific charges have been created.
| Is This Answer Correct ? | 24 Yes | 3 No |
Answer / amit pandey
bonds are secured loans offered by a company where the
bond holder will be paid the principal amount+interest
after a fixed time before maturity you will not get
anything.so it is like taking insurance policy.they are
much secured.bonds are usualy offered by government
companies.
debentures are not very secured loans offered by
companies.during the bankruptcy bond holder will get
preferance.though in debentures case interest rate is very
high and fixed amount is paid at regular intervals .
| Is This Answer Correct ? | 24 Yes | 3 No |
Answer / ganesh reddy
Both Debenture and Bond issued by the company to meet its
long term obligation. In india both are use in same sence.
but the difference is
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
| Is This Answer Correct ? | 35 Yes | 16 No |
Answer / suhasini modagi
Asihya, syed , vijay and ganesh what they told is correct
and want to add one more point is that , usually bond is
issued by govt/federal govt and it is more secure than the
debenture.
| Is This Answer Correct ? | 22 Yes | 7 No |
Answer / 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 |
Answer / prasad m. samant
The major difference lies in Securitisation i.e. Bond holder
can underlie the companies asset comparatively more than
Debenture holder. And another difference is Debenture
issued by the Government enterprise is called as bond.
| Is This Answer Correct ? | 17 Yes | 5 No |
Answer / fairy
Bonds are more secured as compare to the debuntures.
because debuntures are issued by ther companies. debunture
holders don't have claims against the company. they can't
sell the assets of the company.. while if the co. is
bankrupt the bond hoders have claims against the company.
they can sell the assets of the company to settel their
claims.
| Is This Answer Correct ? | 13 Yes | 3 No |
Answer / noheed khan
bond is secure financing as compared to debenture.it is
types of bons.
| Is This Answer Correct ? | 13 Yes | 3 No |
Answer / 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
| Is This Answer Correct ? | 10 Yes | 6 No |
what is the entry for goods sent from one factory to another under inter branch transfer sale of the same compny and what should be the valuation for this purpose?
Expand---------DEP
send me accounting test ppaers
Pls let me know how to calculate TDS n on what basis is it done
Received cheque Rs 250000 which is exclusive of 5% Security deposit 2.24% income tax and i% miscellaneous recovery. Pass necessary entry
what is meant by cost accounting? How it is different from financial accounting
Hi guys, If anyone have gone through the CAPITAL IQ-Junior Research Associate interview then plz let me know about its pattern..and if anyone hav its placement papers or any other information then plz post to me at arshadbasha_mba@rediffmail.com
This is a managerial finance question on capital structure - My capital expenditure is 40mil, and my forecast retained earnings are 15mil, my targeted capital structure is a debt ration of 40%. What is the amount of dividends and new common stock that the company will issue.
You configured new asset accounting with three depreciation areas that post in real time. You need to do a partial scrapping to an asset in transaction type. How many document does the transaction create ?( any 1 answer) 1 3 4 6
which are the basic princeples of accountancy... with examples
0 Answers Family Credit, Standard Bank,
What is sales against E-1 Format, and wht are other forms of sales in a company ??
Who is Home minister of India?