Question

Name the return given two debenture holder for using their fund

Answer 1

Answer : Acknowledgement

Explanation :

The return given to the debenture holders for raising their fund is acknowledgement

Answer 2

Interest on debentures is the return given to the debenture holder for using their fund.

Explanation:

• The debentures do not come with any collateral backing and they are dependent on the reputation and the worth of the issuer.  

• It is a form of legally binding or a contract between the issuer of the bond and the holder of the bond.  

• The debentures are issued for raising capital by the business organizations or the government.  

• There is an interest rate that is paid for the debentures which are an advantage for the business organizations since they have low-interest rates and long dates for repayment.