Difference between revisions of "Debenture"

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A '''debenture''' is an unsecured [[debt]].  It is simply a promise by the borrower to repay the lender.  A debenture will [[mature]] on a specific day and state an [[interest rate]].  This rate may be [[fixed]], or tied to some sort of [[index]], such as the [[LIBOR|London Interbank Offered Rate]] or the [[Federal funds rate|Federal Funds rate]].
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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 debtDebentures may also be issued by [[privately held]] corporations.
  
Most [[corporate bonds]] are debentures.  The rate of interest a corporation will pay on its bonds is a function of the market's perceived [[risk]] of the corporation being unable to repay the debt. Debentures may also be issued by [[privately held]] corporations.
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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 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.
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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