CUET Preparation Today
| Debentures carry interest at: |
10% p.a. 5% p.a. Fixed-rate of interest 15% p.a. |
| Fixed-rate of interest |
| Companies use debentures as fixed-rate loans and pay fixed interest payments. However, the holders of the debenture have the option of holding the loan until maturity and receive the interest payments, or convert the loan into equity shares. |
