Vidyalelo
Commerce · Q73

Financial Management

Graduate and Post Graduate · Commerce · question 73

Q73

A fixed rate of _________ is payable on debentures

A.
dividend
B.
Commission
C.
Interest
Answer
D.
Brokerage

Answer: Option C

Solution

Answer: Option C
Solution:
A fixed rate of Interest is payable on debentures. Debentures are a debt instrument used by companies and government to issue the loan. The loan is issued to corporates based on their reputation at a fixed rate of interest.