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Most corporate bonds are debentures. The rate of interest a corporation will pay on its bonds is a function of the market's perceived risk of the corporation being unable to repay the debt. Debentures may also be issued by privately held corporations.
Most corporate bonds are debentures. The rate of interest a corporation will pay on its bonds is a function of the market's perceived risk of the corporation being unable to repay the debt. Debentures may also be issued by privately held corporations.
It differs from a '''mortgage bond''' because the latter had a real asset (such as a house or factory) that could be sold to pay off the debt.
[[Category:Finance]]
[[Category:Finance]]
[[Category:Business]]
[[Category:Business]]