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Debentures carry several risks, primarily credit risk, which is the possibility that the issuer may default on interest payments or principal repayment. Interest rate risk also exists, as rising rates can decrease the market value of existing debentures. Additionally, liquidity risk may arise if investors find it difficult to sell the debenture in the market. Lastly, inflation risk can erode the purchasing power of fixed interest payments over time.
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If someone holds a debenture what can they do with it?
With a debenture, a company can hold a debt with another. A debenture is a loan agreement where there is no collateral or assets involved. It is based on the promise and credit history of the company that it will be paid back.
Can a debenture be shared between two lenders?
Yes, a debenture can be shared between two lenders through a process known as debenture syndication. In this arrangement, multiple lenders can collectively provide the funds secured by a single debenture, allowing them to share both the risks and returns associated with the loan. The terms of the debenture and the agreement among the lenders will outline how the interest, principal repayment, and rights are divided.
What are the risks involved in a vaginal piercing?
what are the risks involved in a vaginal piercing
What is a debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
What is debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
Solve questions of debenture in advance accounting?
what is debenture
What risks are involved by doing the floating egg in salt water experiment?
There are no serious/significant risks involved in the experiment.
Is debenture a current asset?
No. Debenture is a form of liability for a business.
What risks are involved with importing cars?
There are a great many risks that can be involved when importing cars. Damage to the car is one concern.
What are the different types of risks involved in a business and how to overcome such risks?
The major risks involved in a business are : 1) Competition 2) Credit giving 3) damages and losses
How does a term loan differ from a non invertible debenture?
Noninvertible debenture
Is debenture holder a customer of the company?
NO,debenture holder is the creditor of the company
