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Question
Which of the following given statement is correct.
Statement 1 - "Bond and debentures are same in terms of contents and texture."
Statement 2 - "Bond and debentures are not same in terms of contents and texture."
Options
Only Statement 1 is correct
Only Statement 2 is correct
Both the statements are incorrect
None of these
MCQ
Solution
Only Statement 1 is correct
Explanation:
In terms of content and texture, a bond is similar to a debenture, although they are not identical. The sole distinction is in the issuance condition; unlike deep discount bonds, bonds can be issued without a specified rate of interest.
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Redemption of Debentures
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