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What is the basic difference between bond and debenture?
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Answer Posted / ramesh konne
Bonds are debt and are issued for a period of more than one year. companies and many other types of institutions sell bonds. When an investor buys bonds, he or she is lending money. The seller of the bond agrees to repay the principal amount of the loan at a specified time. Interest-bearing bonds pay interest periodically.
Debenture means company for its extension and development may require to raise funds without increasing its share capital is called debenture.
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