Name the debentures without backing of assets
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Answer:Convertible- Some investors are provided with an option to receive maturity value or have their debentures converted into equity, a feature that alleviates the fear of investing in an unsecured instrument to some extent.
Non-convertible- Investors only receive the maturity value along with the accrued interest with no opportunity for equity conversion.
Perpetual – Unsecured bonds with no maturity date are said to be perpetual. They are considered akin to equity and not as a debt instrument.
Floating rate- interest payments fluctuate as rates vary.
Fixed rate- Interest payments remain the same throughout the life of the unsecured bond.
Explanation:
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