DIFFERENCE BETWEEN BONDS AND DEBETURES

In Brief:

• Bonds are more secure than debentures, but the rate of interest is lower

• Debentures are unsecured loans but carries a higher rate of interest

• In bankruptcy, bondholders are paid first, but liability towards debenture holders is less

• Debenture holders get periodical interest

• Bond holders receive accrued payment upon completion of the term

• Bonds are more secure as they are mostly issued by government firms

http://www.differencebetween.com/difference-between-bond-and-debenture/