BOND

An instrument of raising long-term debt on which the bond-issuer pays a periodic interest (known as ‘coupon’ ). In theory, bonds could be issued by governments as well as private companies.

Bonds generally have a maturity period, however, some bonds might not have any definite maturity period (which are known as ‘Perpetual Bonds’ ).

Bonds are supported/secured by collateral in the form of immovable property (i.e., fixed assets) while debentures, also used to raise long-term debt, are not supported by any collateral.