Question

The rate of interest of debentures in attached to the debentures. (State True or False)

Answer 1

ť Jambari Marcello Kano

Answer 2

Answer:

True

Explanation:

The rate of interest of debentures in attached to the debentures. -  True

Debentures are debt funds issued under a company's common seal in the form of certificates. The certificate includes information of interest rate for the defined period, principle repayment and interest payment schedule.

Debentures are issued with payment of interest at periodic intervals at a fixed interest rate. The repayment of the principal amount, however, is only made after a specified period has expired.