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Who decides rate of interest for debentures?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked almost 3 years ago

Hi I am Kruthika. I am preparing for CA exam. Can I know, Who decides rate of interest for debentures?

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Company decides the rate of interest for debentures where debenture is just a simple document which is used to create either debt or acknowledge the debt. When the company issues it then it does it in the form of a certificate which acknowledge's indebtedness

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Company decides the rate of interest for debentures where debenture is just a simple document which is used to create either debt or acknowledge the debt. When the company issues it then it does it in the form of a certificate which acknowledge's indebtedness. The debentures are issued to the lenders under the Company's Common Seal and against the charge on the assets of the Company. Whoever holds the debentures doesn't have the right to hold the meeting with the company. The rate of interest with which the debentures gets issued are called as coupon rate.

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Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Kruthika, - Company decides the rate of interest for debentures where debenture is just a simple document which is used to create either debt or acknowledge the debt. When the company issues it then it does it in the form of a certificate which acknowledge's indebtedness. The debentures are issued to the lenders under the Company's Common Seal and against the charge on the assets of the Company. Whoever holds the debentures doesn't have the right to hold the meeting with the company. The rate of interest with which the debentures gets issued are called as coupon rate. **They are of two types:** - Fixed Rate - Floating rate of interest are in accordance with the rate of bank and reward of risk.

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered almost 3 years ago

Company decides the rate of interest for debentures where debenture is just a simple document which is used to create either debt or acknowledge the debt. When the company issues it then it does it in the form of a certificate which acknowledge's indebtedness. The debentures are issued to the lenders under the Company's Common Seal and against the charge on the assets of the Company. Whoever holds the debentures doesn't have the right to hold the meeting with the company. The rate of interest with which the debentures gets issued are called as coupon rate. They are of two types: ---------------------- - Fixed Rate - Floating rate of interest are in accordance with the rate of bank and reward of risk.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 3 years ago

Dear Friend, as far as your query is concerned that Who decides rate of interest for debentures? Let me informed that Company decides the rate of interest for debentures where debenture is just a simple document which is used to create either debt or acknowledge the debt. When the company issues it then it does it in the form of a certificate which acknowledge's indebtedness. The debentures are issued to the lenders under the Company's Common Seal and against the charge on the assets of the Company. Whoever holds the debentures doesn't have the right to hold the meeting with the company. The rate of interest with which the debentures gets issued are called as coupon rate. They are of two types: - Fixed Rate - Floating rate of interest are in accordance with the rate of bank and reward of risk. Hope answer was helpful to you Regards, Arjun Pratap Singh

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