Economics · Economy
Which of the following statements is true about debenture interest?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The interest rate on debentures is variable and depends on market conditions.
- 2The interest rate on debentures is fixed and known to bondholders.✓
- 3The interest on debentures is paid only when the company generates profits.
- 4The interest on debentures is calculated based on the company's dividends.
Correct answer
The interest rate on debentures is fixed and known to bondholders.
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