Changes

A '''debenture''' is an unsecured [[debt]].  It is simply a promise by the borrower to repay the lender.  A debenture will [[mature]] on a specific day and state an [[interest rate]].  This rate may be [[fixed]], or tied to some sort of [[index]], such as the [[LIBOR|London Interbank Offered Rate]] or the [[Federal Funds rate]].

A '''debenture''' is an unsecured [[debt]].  It is simply a promise by the borrower to repay the lender.  A debenture will [[mature]] on a specific day and state an [[interest rate]].  This rate may be [[fixed]], or tied to some sort of [[index]], such as the [[LIBOR|London Interbank Offered Rate]] or the [[Federal funds rate|Federal Funds rate]].

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.