Explain the Different Sources of Finance of Redemption of Debentures
Companies use debentures when they need to borrow the money at a fixed rate of interest for its expansion. Redemption out of capital. 2 The debenture classification is. . So let us take a look at the various methods of redemption of debentures. Debentures are issued by a company for acquiring long-term borrowings. Traditionally the Government issued bonds but these days bonds are also being issued by semi-government and non-governmental organisations. Debentures and fixed deposits are two different ways of investing money through relatively low-risk financial instruments. From the proceeds of fresh issue of shares or debentures. These are also known as secured debentures. Bond is also an instrument of acknowledgement of debt. I Debentures provide long-term funds to a company. There are a few ways in which this redemption of shares can take place. Proceeds from the sale of real property pla...
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