what is debenture in accounts
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debenture is a long-term bond issued by a company, or an unsecured loan that a company issues without a pledge of assets.
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Debenture is one of most typical forms of long term loans that company can have.
Generally a loan that will be repaid on fixed date but some debentures are irredeemable securities (referred to perpetual type debentures).
Majority of debentures come with fixed rate of interest.
Debentures are backed by general creditworthiness and reputation of issuer.
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