Bonds are issued as long-term financial instalments by the Central Govt., State Govt, or any specialized financial institution. These are some fine differences between debentures and bonds :
1. A debenture may be issued by creating charge on the company's assets or without this charge. A bond can be issued only by creating charge on the assets.
2. A debenture may be redeemed in instalments while a bond is redeemed in lumpsum.