BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Bonds are fixed income securities that are issued by corporations and the government, to raise money for business expansion or financing new projects. They are issued at a discounted price on their face value and can be traded in the secondary market.

Detailed explanation-2: -Convertible debentures are long term financial instruments that a company can transform into equity shares after a fixed period of time. They are usually unsecured bonds with no collateral to back up their debt. They are hybrid financial products that have features both of equity as well as debt.

Detailed explanation-3: -Because debentures are debt securities, they tend to be less risky than investing in the same company’s common stock or preferred shares. Debenture holders would also be considered more senior and take priority over those other types of investments in the case of bankruptcy.

Detailed explanation-4: -They are offered for a short period of time, with a maturity period that usually does not exceed a year. However, such fixed-income bonds in India are sold over the counter, and hence, are not accessible to standalone investors. It can only be purchased through money market Mutual Funds.