What context can I use each word in?
Learn when and how to use these words with these examples!
debenture
Example
The company issued debentures to raise funds for its expansion plans. [debentures: noun]
Example
The debenture agreement outlined the repayment schedule and interest rate. [debenture: noun]
bond
Example
The government issued bonds to finance infrastructure projects. [bonds: noun]
Example
The bond agreement specified the interest rate and maturity date. [bond: noun]
Good things to know
Which word is more common?
Bond is more commonly used than debenture in everyday language and financial markets. Bonds are widely issued by governments and corporations, while debentures are less common and usually issued by companies.
What’s the difference in the tone of formality between debenture and bond?
Debenture and bond are both formal terms used in financial contexts. However, debenture may be considered slightly more formal due to its less common usage and higher risk profile.
