Answer #1

Money and finances are typically one vital concept that humans are generally interested to get involved with. As this is part of the identified basic necessities for human beings to survive and sustain a living, most if not the entire population always have a niche on money matters, particularly those that entail earning and gaining beneficial outputs. While it is hard to be in an equally stable financial status these times, the mechanism of lending or loaning has been recognized and evidently became a trend. Two most common types are the concepts of bond and debenture.

Although these two typically belong to the same category in terms of how materials can be a source of gaining incomes in forms of loans, bonds differ from debentures in the sense that the former can be evidently performed among companies and other freelance business es whereas bonds generally take place among government and authorized financial establishments.

Putting further analysis on what has been cited, it can be implied that debentures take on the riskier road as compared to bonds which tread on the safer and more secure way of gaining income.

Apart from that, bonds and debentures share disparity in characteristics. Debentures are typically characterized by periodical collection of interest as what has been agreed by the parties involved, higher interest rates and less prioritized in cases of bankruptcy. Bonds, on the contrary, are basically characterized by acquisition of full pay at the end of the agreed contract, low interest rates yet in priority when instances of bankruptcy take place.

Due the unceasingly and inevitably demanding world of this modern era, concepts of bond and debenture are still employed in various parts of the world, as it remains to be a fact that money drives men to live blissfully.

Answered By: katrina [385 ]