What are the different debt recognition letters and bonds?

[Suba]

Although both are debt instruments, and look similar, but debt recognition letters and bonds have some striking differences. All I know is, the debt recognition letter is often only physical (paper sheet) but bonds can be physically or digital. In addition, Bond is also issued by the government or company, while the debt recognition letter can be issued by individuals or companies such as business owners to pemasaok, and of course there are many other differences that you can describe below.

 

[Starmix]

A bond could be a huge cash, your trust funds , or anything valuable while you're still active on the purpose of the bond. A recognition letter will serve as a prima facie evidence for court or deniance to recognuze the obligation to pay, the debt.

 

[Augusta]

A surety bond is a three-party contract in which the Surety guarantees the performance of the Principal to the Obligee. A Letter of Credit is a commitment by the issuer such as, for example, a bank, to the beneficiary to honor a complying request for payment.

 

[kit_hung]

A promissory note and a bond are both financial documents relating to debt, but they have significant differences. A promissory note is often issued between individuals or businesses as a way to prove that a debt exists. This is common in informal contracts and is often written on paper without a formal financial market system.

A bond, on the other hand, is a formal financial document issued by a government or company with the aim of raising capital from investors. Bonds can be digital or paper and are traded on financial markets. They have specific terms such as a repayment period and interest paid to the investor.

The main difference is that bonds are legal and can be sold or transferred to others while a promissory note is often personal and cannot be easily sold. Bonds are also regulated by financial institutions and capital market laws while a promissory note can simply be a bilateral agreement without formal supervision.