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The Debenture loan is an unsecured debt backed by the credit worthiness of the borrower. The interest is calculated based on the 10-year Treasury rate plus a market-driven spread, which is currently about 65-75 basis points.

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3y ago

how do you calculate interest on debentures

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Q: How do you calculate interest on debentures loan?
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Related questions

What is meant by loan capital?

short term and long term liabilities, which have due dates and the interest is paid. for example , debentures. compnay raises funds by issuing debentures and thes funds are loan capital. which means capital raised by loan.


How is interest paid on debentures is shown in Financial statments?

interest paid for debentures is a/an


Where can one calculate interest of a loan?

The interest of a loan can be calculated by using the 'Loan Calculator' facility at the Bankrate website. One would need to know details, such as the interest rate and the loan term.


Do the car loan payment calculators calculate interest of the car?

Yes, car loan payment calculators should calculate interest of the car loan. They will most likely ask you to enter the interest rate, so they can include interests in their calculations.


What is a debenture?

Debentures function more or less like bonds. One can also term debentures as a variant of bonds. Debentures are issued by a company which offers to pay interest in lieu of the money borrowed for a pre-specified period. In essence, it represents a loan taken by the issuer who pays an agreed rate of interest throughout the life of the instrument and repays the principal normally, unless otherwise agreed, on maturity. Bonds on the other hand are more secured than debenture. As a debenture holder, you provide unsecured loan (most of the times debentures are unsecured in nature) to the company. Debentures carry a higher rate of interest as the company does not offer any collateral to you for your money. For this reason bond holders receive a lower rate of interest but are more secure in nature.


What is debentur?

Debentures function more or less like bonds. One can also term debentures as a variant of bonds. Debentures are issued by a company which offers to pay interest in lieu of the money borrowed for a pre-specified period. In essence, it represents a loan taken by the issuer who pays an agreed rate of interest throughout the life of the instrument and repays the principal normally, unless otherwise agreed, on maturity. Bonds on the other hand are more secured than debenture. As a debenture holder, you provide unsecured loan (most of the times debentures are unsecured in nature) to the company. Debentures carry a higher rate of interest as the company does not offer any collateral to you for your money. For this reason bond holders receive a lower rate of interest but are more secure in nature.


How do you calculate nominal interest rate?

Nominal interest, is the amount of interest on a loan or investment that does not take into account inflation; it's the amount of interest listed on the loan or bond.


What is dibentures?

interest paid for debentures is a/an


What is debenture interest?

Interest payable or paid to lenders on debentures.


Does an auto loan calculator include interest?

An auto loan calculator can only calculate interest if you input the interest data. Otherwise, the calculator has no idea of knowing how much the interest is.


Is interest on debentures included in estimating factor income?

yes interest on debentures is to be included in national income, this is as debentures are used fro production purposes and hence income received due to it is a part of factor income


How do you calculate the amount of interest that is paid on a loan?

$5000×.07×2