Question
Who issues bonds? How are they different from debentures?

Answer

Bonds are issued as long-term financial instruments by the Central Government, State Government, or any specialized financial institution.
These are some fine differences between debentures and bonds:
i. There is no to the minimum risk involved in bond investments but the risk factor is high in debentures.
ii. At the time of liquidation, the bondholders are always given preference.

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