Bond refers to a financial instrument that is issued by a company to raise capital. It is a type of debt security that represents a loan made by an investor to a borrower, typically a company or government. The borrower agrees to pay the investor a fixed rate of interest for a specified period of time until the bond matures. Bonds are commonly traded in financial markets, and their prices are influenced by various economic factors such as interest rates, inflation, and credit ratings.

Issue of Debentures:
Debentures refer to a type of bond that is issued by a company, usually with a fixed interest rate and a specified maturity date. The process of issuing debentures involves the following steps:

1. Prospectus: The company prepares a prospectus that contains details about the debentures, such as the interest rate, maturity date, and other terms and conditions.

2. Subscription: The company invites investors to subscribe to the debentures by submitting an application form along with the required amount.

3. Allotment: The company allots the debentures to the investors based on their subscription.

4. Interest payment: The company pays interest to the debenture holders at regular intervals until the debentures mature.

Redemption of Debentures:
Redemption of debentures refers to the process of repaying the principal amount of the debentures to the investors at the time of maturity. The process of redeeming debentures involves the following steps:

1. Intimation: The company informs the debenture holders about the redemption date and the amount to be redeemed.

2. Payment: The company pays the principal amount to the debenture holders on the redemption date.

3. Cancellation: The company cancels the debentures after redemption to avoid any further obligations.

In conclusion, bonds and debentures are important financial instruments used by companies to raise capital. The process of issuing and redeeming debentures involves various steps that need to be followed carefully to ensure smooth transactions and avoid any legal or financial implications.

Definition: A bond is a financial instrument issued for raising an additional amount of capital. A bond is a written agreement or contract between an issuer and the holder that requires the issuer to pay the holder the bond's par value or face value plus the stated amount of interest. Bonds are most typically issued in denominations of $500 or $1,000.