Difference between revisions of "Debenture"
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| − | A ' | + | A 'x]], such as the [[LIBOR|London Interbank Offered Rate]] or the [[Federal funds rate|Federal orrower to repay the lender. A debenture will [[mature]] on a specific dived [[risk]] of the corporation being unable to repay the debt. Debentures may also be issued by [[privately held]] corporations. |
| − | + | It differs from a [[mortgage bond]] because the latter had a real [[asset]] (such as a house or factory) that could be sold to pay off the debt.ay and stFunds rate]]. | |
| − | It | + | Most [[corporate bonds]] are debent''debenture''' is an unsecured [[debt]]. It is simply a promise by the bate an [[interest rate]]. This rate may be [[fixed]], or tied to some sort of [[indeures. The rate of interest a corporation will pay on its bonds is a function of the market's perce |
[[Category:Finance]] | [[Category:Finance]] | ||
[[Category:Business]] | [[Category:Business]] | ||
Revision as of 13:56, July 3, 2010
A 'x]], such as the London Interbank Offered Rate or the [[Federal funds rate|Federal orrower to repay the lender. A debenture will mature on a specific dived risk of the corporation being unable to repay the debt. Debentures may also be issued by privately held corporations.
It differs from a mortgage bond because the latter had a real asset (such as a house or factory) that could be sold to pay off the debt.ay and stFunds rate]].
Most corporate bonds are debentdebenture' is an unsecured debt. It is simply a promise by the bate an interest rate. This rate may be fixed, or tied to some sort of [[indeures. The rate of interest a corporation will pay on its bonds is a function of the market's perce