A 'x]], such as the London Interbank Offered Rate or the [[Federal funds rate|Federal orrower to repay the lender. A debenture will mature on a specific dived risk of the corporation being unable to repay the debt. Debentures may also be issued by privately held corporations.
It differs from a mortgage bond because the latter had a real asset (such as a house or factory) that could be sold to pay off the debt.ay and stFunds rate]].
Most corporate bonds are debentdebenture' is an unsecured debt. It is simply a promise by the bate an interest rate. This rate may be fixed, or tied to some sort of [[indeures. The rate of interest a corporation will pay on its bonds is a function of the market's perce