In corporate finance, a debenture is a medium to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term " debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond, loan ...
Apr 12, 2017 ... Debentures and bonds can be used to raise capital, but debentures are ... the bond acts as a written promise to repay the loan on a specific ...
Like other types of bonds, debentures are documented in an indenture. ... These loans are normally repayable on a fixed date and pay a fixed rate of interest.
The reason is that debenture is an unsecured loan and therefore, is riskier than a bond.
Nov 15, 2014 ... Brief overview of Debentures & Bonds and Term Loans. A project given to our class group for the subject Corporate Finance. Hope it helps.
Debentures are unsecured debt or bonds that repay a specified amount of money ... Corporate debentures are most commonly used for long-term loans, which ...
A debenture is an unsecured loan you offer to a company. ... Debentures are different from stocks and bonds, although all three are types of investment.
The main difference between mortgage bonds and debenture bonds is collateral. ... than it would if the company simply issued a promise to repay its loans.
Bonds and loans are both debt instruments, although they are not quite the same thing. Generally, bonds can be traded and are issued by companies or ... What Are the Differences Between a Mortgage Bond & a Debenture Bond? What Are ...