Question

What are the differences between bonds and debentures?

Answer 1

Differences between bonds and debentures are as follows:

DEBENTURES	BONDS
Debentures give you high interest.	Bonds give you low interest, but it depends on the issuing body totally.
Debentures can be secure as well as unsecured.	Bonds are secure in nature.
Debentures are at high risk.	Bonds are less risky comparatively.
On the other hand, debentures are issued by private companies.	One can have bonds of a corporation, government agencies or it can be of any financial institution.
In the case of debentures, liquidity can only be done after the bondholders are paid.	Talking about liquidity bonds is the first priority.