Question : Which of the following is a feature of a debenture?
Option 1: Low-risk investment
Option 2: Fixed-rate of interest
Option 3: No maturity period
Option 4: High liquidity
Answer (1)
15th Jan, 2024
Correct Answer:
Fixed-rate of interest
Solution : The correct answer is (b). Fixed-rate of interest
A debenture is a type of debt instrument issued by companies or governments to raise capital. It represents a loan agreement between the issuer and the investor, where the issuer promises to repay the principal amount along with periodic interest payments.
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