Following is not a Fixed Income Bearing Security
(a) Debentures
(c) Preference Shares
Interest is always calculated on the
b) Equity Shares
(d) Government security
Answers
Debentures is not a Fixed Income Bearing Security
Explanation:
Debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. Debentures are also known as a bond which serves as an IOU between issuers and purchaser. It is not secured by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.
Option A is the answer.
Answer:
a) Debentures
Explanation:
A debenture is a distinctive form of long term loan which an organisation can take from bank primarily on the basis of expansion. One good thing is that it has a fixed interest rate which makes its safer than other investment or loans types in market which varies with market trend just like shares do. But on the other end, debentures have to be paid back on their agreed dates
It is normally a loan that should be repaid on a specific date, but some debentures are irredeemable securities (sometimes referred to as perpetual debentures). The majority of debentures come with a fixed interest rate.