The terms bond and debenture are often used interchangeably and refer to a corporate IOU.

Name: The terms bond and debenture are often used interchangeably and refer to a corporate IOU.
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Both bonds and debentures are types of debt instruments issued by corporations (and sometimes governments) to raise capital, and they essentially serve as an IOU from the issuer to the investor, promising to pay back the principal amount along with interest.

The Terms Bond and Debenture Are Often Used Interchangeably and Refer