No products in the cart.

  1. Homework Help
  2. CBSE
  3. Class 11
  4. Financial Market Management

What is difference between bonds and …

CBSE, JEE, NEET, CUET

CBSE, JEE, NEET, CUET

Question Bank, Mock Tests, Exam Papers

NCERT Solutions, Sample Papers, Notes, Videos

Install Now
What is difference between bonds and debentures ?

    • Posted by Ramandeep Kaur 4 years, 3 months ago

    CBSE > Class 11 > Financial Market Management
    • 1 answers

    Yogita Ingle 4 years, 3 months ago

    1. Bonds are the financial instruments issued by Government agencies and also by Private organizations for raising additional fund from the public. Debentures are issued by private/public companies for raising capital from the investors.
    2. Bonds are backed by the asset of the issuer whereas debentures are not secured by any of the physical assets or collateral. Debentures are issued and purchased only on the creditworthiness and reputation of the issuing party.
    3. The interest rate of bonds is generally lower than debentures. The lower interest rate depicts the low-risk factor. On the other hand, debentures give you a high-interest rate but they are unsecured in nature hence the risk factor is more here.
    4. The interest on a bond is given to the bondholder in monthly, half-yearly or annually. The interest amount never differs as the interest paid is not depended on the performance of the issuer. Adversely, if you buy debentures, your interest rate may be high but the interest payment will be periodic depending on the performance of the issuer.
    5. There is no to the minimum risk involved in bond investments but the risk factor is high in debentures.
    6. At the time of liquidation, the bondholders are always given preference.
    7. If you own bonds, you can never convert it to equity shares, but debentures can be transferred to equity funds.

    6Thank You

    ANSWER
    http://mycbseguide.com/examin8/

    Related Questions

    Important topics from chapter primary and secondary market ??

    • Posted by Gur _Sidhu 1 year, 9 months ago

    CBSE > Class 11 > Financial Market Management
    • 1 answers
    Case study of chapter enterpreneurship FMM

    • Posted by 7136-Adarsh-10-G Singh 1 year, 9 months ago

    CBSE > Class 11 > Financial Market Management
    • 0 answers
    Term 1 syllabus

    • Posted by Haran Saroj 2 years, 1 month ago

    CBSE > Class 11 > Financial Market Management
    • 1 answers
    Explain the investment alternative in detail

    • Posted by Ishant Sabale 1 year, 5 months ago

    CBSE > Class 11 > Financial Market Management
    • 3 answers
    T- Bill is issued in the market by?

    • Posted by Sneha Didi 2 years, 2 months ago

    CBSE > Class 11 > Financial Market Management
    • 0 answers
    What are abridge funds

    • Posted by Shoeab Nasir 1 year, 9 months ago

    CBSE > Class 11 > Financial Market Management
    • 3 answers
    All chapters notes

    • Posted by Jyoti Kumari 1 year, 9 months ago

    CBSE > Class 11 > Financial Market Management
    • 1 answers
    Different names of money with thier meaning

    • Posted by Subhom Das 1 year, 2 months ago

    CBSE > Class 11 > Financial Market Management
    • 0 answers
    Investment

    • Posted by Bhavjot Singh 1 year, 10 months ago

    CBSE > Class 11 > Financial Market Management
    • 0 answers
    Who decides the price band?

    • Posted by Saral Jaiswal 2 years ago

    CBSE > Class 11 > Financial Market Management
    • 1 answers

    myCBSEguide App

    myCBSEguide

    Trusted by 1 Crore+ Students

    Install Now

    Test Generator

    Test Generator

    Create papers online. It's FREE.

    Try Now

    CUET Mock Tests

    CUET Mock Tests

    75,000+ questions to practice only on myCBSEguide app

    Install Now
    Google Play

    Download myCBSEguide App

    All Courses

    Other Websites

    CBSE Courses

    Resources

    Corporate

    NCERT Solutions

    CBSE Sample Papers

    All Content and Intellectual Property is under Copyright Protection | myCBSEguide.com ©2007-2024