Question

Enlist the a major benefits of issuing Debenturus to the company and any 2 major disadvantages to the investor ​

Answer 1

Advantages and Disadvantages of Debentures

Investors who want fixed income at lesser risk prefer them. ... Financing through them is less costly as compared to the cost of preference or equity capital as the interest payment on debentures is tax deductible. The company does not involve its profits in a debenture.