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Questions
Explain Debentures.
What is meant by debentures?
What are debenture?
Answer in Brief
Solution
- Debentures are an important way of acquiring long-term debt capital.
- A company can raise capital by issuing debentures at a specified rate of interest.
- A debenture issued by a firm acknowledges that the company has borrowed a specified amount of money, which it makes to repay at a later period.
- Debenture holders are so classified as creditors of the company.
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Notes
Students should refer to the answer according to their questions.
Debentures/Bonds
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