For simplicity and understanding, bonds and debentures can be compared to unsecured and secured loans. That’s the prime difference that can differentiate between a bond and a debenture. Both bonds and debentures are issued by large corporations and Government institutes to raise funds. With some variation in features, debentures are termed as one type of …
Bonds are debt instruments that come with fixed-interest rates traditionally. Floating rate bonds are a special type of bond with adjustable or floating interest rates. For individual investors, these debt instruments resemble much like floating-rate bank loans for you. Floating rate bonds or notes are issued by the same financial entities usually Government financial institutes …
Floating Rate Bonds: Characteristics, Rate, and Important Read More »
Income Bonds – An Overview: Bonds are usually considered fixed-income debt instruments. Large financial institutes and corporations issue bonds making these debt instruments secured loans. Some corporate bonds come with certain features and covenants that make them different in nature. Income bonds are a type of corporate bond where the issuer pays interest only with …
Income Bonds: When Income Bonds Are Issued? Feature and More Read More »
