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To pay for a debenture, an issuer typically raises funds through the sale of the debenture to investors, who then provide the capital upfront. The issuer agrees to pay periodic interest, known as coupon payments, to the debenture holders until maturity. At maturity, the principal amount is repaid to the debenture holders. Payment can be made through various means, such as bank transfers or checks, depending on the terms set during the issuance.

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2w ago

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What would you pay for a 100000 debenture bond that matures in 15 years and pays 10000 a year in interest if you wanted to earn a yield of 8 percent?

A term debenture have value of Rs.100/-(fore one debenture).thus the value of 100000 debenture is equal to 10 crore.The interest will be Rs.800000/- per year


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


Is debenture a current asset?

No. Debenture is a form of liability for a business.


How do you redeem debenture?

To redeem a debenture, the holder must typically submit a redemption request to the issuing company ahead of the maturity date, following the terms outlined in the debenture agreement. The company will then pay the principal amount along with any accrued interest. If the debenture is callable, the issuer can redeem it before maturity under specified conditions, often at a premium. Always check the specific terms for any fees or conditions associated with the redemption process.


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


What is the Legal definition of All Assets Debenture?

what is an all assets debenture


What is the difference between a convertible bond and a convertible debenture?

A convertible debenture is a type of convertible bond. However, a debenture is unsecured debt, which means that there is no collateral for the bond. The alternative to a debenture would be a secured bond such as a mortgage bond that would be secured by real estate. If the company goes out of business, the collateral for the secured bonds would be used to pay off those bonds and the holders of the debentures would be paid from whatever is leftover. Most convertible bonds are debentures.


What is the journal entry for accrued debenture interest?

Interest A\c Dr Accured debenture Cr


What is the nature of debenture suspense account?

Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.