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Explain debentures ? |
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Answer» debentures are creditorship securities and an important debt instrument for raising long-term finance debentures carry a fix rate of interest as they are prefixed it is mandatory for companies to pay interest on debentures regularly and repay the debentures capital on maturity as agreed upon .debentures can be redeemable debenture convertible debenture and collateral debenture Debentures are the instrument for taking loans these debenture holders have first share in the companies profit A debenture is one of the most typical forms of long term loans that a company can take.It is normally a loan that should be repaid on a specific date, but some debentures are irredeemable securities (sometimes referred to as perpetual debentures). |
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