DEBENTURES BONDS NOTES Homework Help

DEBENTURES BONDS NOTES

Akin to a promissory note, debenture/bonds represent creditor-ship securities and debenture long-term creditors of the company. As a Secured instrument, it is a promise to pay and repay principal at stipulated times. In contrast to equity capital which is a variable dividend security, the debentures/notes are fixed income (interest) security.

Attributes

As a long-term source of borrowing, debentures have some contrasting features compared to equities.

Posted by: andy

Share This