Bonds and debentures are both long-term borrowing instruments where the borrower promises to pay interest on specific dates and the principal upon maturity. Debentures are unsecured while bonds can be secured by assets of the issuing company. Bonds provide regular income payments to investors and do not provide ownership in the issuing company. The value, yield, and returns of bonds are determined by factors such as the par value, coupon rate, maturity date, call provisions, and credit quality of the issuer.