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Bond/Debenture

Bond is a document by which a public limited company borrows the funds for a defined period of time at a variable or fixed interest rate.

According to L.J. Gitman,” a corporate bond is a certificate indicating that a corporation has borrowed a certain amount of money from an institution or an individual and promises to repay it in the future under clearly defined term.”


Bond is a negotiable instrument evidencing debt, under which the issuer promises to pay the holder its face value plus interest as agreed. The cost price of an asset less accumulated depreciation.

 

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