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What is a debenture in corporate finance?
What is a Debenture bond?
What type of debt instrument does a company use?
Are debentures unsecured?
Is a debenture an asset or a liability?
What are the different types of debentures?
Aug 5, 2024 · A debenture is a type of debt instrument that is not backed by any collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and...
Sep 12, 2022 · Bonds and debentures are among the most popular types of fixed-income debt instruments. Bonds are issued by governments or businesses. Investors pay the issuer the market value of the bond in...
- Claire Boyte-White
Oct 23, 2024 · Bonds and debentures are debt instruments that governments and companies use to raise capital.
Debentures: Debentures are a type of debt instrument that is not secured by physical assets or collateral. They are backed only by the general creditworthiness and reputation of the issuer. 2. Security: Bonds: Bonds can be secured or unsecured. Secured bonds are backed by specific assets as collateral, providing more security to bondholders.
Mar 18, 2021 · Bonds are the most common debt instrument that companies use, but there is a specific type of instrument, known as a debenture, which is a common type of bond. Debentures work similarly to traditional bonds, except they are not secured by collateral or any assets.
- Tim Lemke
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond, loan stock or note.
A debenture is a long-term debt instrument issued by corporations and governments to secure fresh funds or capital. There is no collateral or physical assets required to back up the debt, as the overall creditworthiness and reputation of the issuer suffice.