Question

...are issued to raise loan from the investors at a fixed rate of interest for a specific period. *

a. Demand loan

b. Term loan

c. Debentures

d. Borrowed Funds​

Answer 1

Answer:

d

Explanation:

I got no explanation man

Answer 2

Answer:

Debentures are issued to raise loan from the investors at a fixed rate of interest for a specific period.

Therefore, the answer to this question is option (c) debentures.

Explanation:

A firm or other entity may issue debentures as a marketable instrument (a sort of investment) to raise cash for long-term operations and expansion. Since it is a type of borrowed capital, the issuing company's balance sheet accounts for it as debt. Debentures are comparable to bonds, but unlike bonds, they are unsecured, meaning that in the event of default, investors have no right to the company's assets. Debentures are often issued by large firms with triple A credit ratings because repayment is exclusively contingent upon the creditworthiness of the issuing organisation. They are an efficient way for corporations to take advantage of their priviledged position by borrowing money with little oversight and no security. A debenture is a formal document that specifies the principal amount of the investment, the interest rate, and the frequency of payments. When the debenture matures, investors often get their principal back (i.e., at the end of its term).

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