The debentures are a long-term source of finance. They consist of a long-term pre-set maturity period. Normally, the debentures have a maturity period of 10-20 years and are redeemed at the end of the maturity period. It is also cost-effective when compared with other forms of lending. Debentures usually provide a fixed rate of interest for the lender, and this has to be paid before any dividends are issued to shareholders.
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I have a question please answer
Explain any three characteristics of debentures as long term source of financial
The debentures are a long-term source of finance. They consist of a long-term pre-set maturity period.
Normally, the debentures have a maturity period of 10-20 years and are redeemed at the end of the maturity period.
It is also cost-effective when compared with other forms of lending. Debentures usually provide a fixed rate of interest for the lender, and this has to be paid before any dividends are issued to shareholders.
Please give me the answer with in 7pm because tomorrow my exam
Hello mam