Question

and carry a fixed rate of interest and are to be paid off irrespective of the firms revenues
Select one:
a. Debentures Dividends
b. Debentures Bonds
c. Dividends Bonds
d. Dividends Treasury notes​

Answer 1

In this question, we are asked to choose the correct option from the given below.

• Option A is the correct answer i.e., Debenture Interest.
• Debentures carry a fixed rate of interest and are to be paid off irrespective of the firm's revenues.
• Debentures are a type of financial instrument with durations often exceeding 10 years and no underlying collateral.
• Debentures are only supported by the issuer's creditworthiness and reputation. Both corporations and governments frequently issue debentures to raise cash or funds.
• Dividends are paid to shareholders.
• Debenture holders receive interest, though. Profits generated by the business can be used to pay dividends to the shareholders.
• Regardless of whether the company has made a profit, interest can still be paid to the holders of the debentures.

CORRECT QUESTION

..... carry a fixed rate of interest and are to be paid off irrespective of the firm's revenues

Select one:

a. Debentures Interest

b. Debentures Bonds

c. Dividends Bonds

d. Dividends Treasury notes​

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Answer 2

COMPLETE QUESTION:-

________ and_______ carry a fixed rate of interest and are to be paid off irrespective of the firm’s revenues.

• a) Debentures, Dividends
• b) Debentures, Bonds
• c) Dividends, Bonds
• d) Dividends, Treasury

ANSWER:-

• Debentures and bonds carry a fixed rate of interest and are to be paid off irrespective of the firm's revenues.

EXPLANATION:-

• A debenture's rate is either fixed or floating and relies on the credit rating of the company or the credit rating of the bonds.
• Debentures mostly garner a higher interest rate payment than secure debt to equalize some of the collateral threats.
• The debenture holder receives money back simply after the company is liquidated. A debenture holder is the possessor of the company. The debenture holder obtains interest only if there is revenue.
• Only once one's bond has enrolled, can one pertain for a fixed interest rate and then there is a formal time limit connected before the offer declines.
• Bonds are a category of long-term fixed-principal security of better than 10 years. After the investment, interest payments are expended every six months until maturity, when the principal is settled.

Hence, the correct option is b) Debentures, Bonds

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