Different types of debentures based on their security

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Questions

1. What is a debenture, and how does it differ from other types of debt securities?

2. What are the key features of a debenture, such as maturity, interest rate, and repayment terms?

3. How are debentures issued by companies, and what is the purpose of issuing debentures?

4. What are the different types of debentures based on their security, such as secured and unsecured debentures?

5. How are debentures classified in terms of their priority in repayment, such as senior and subordinated debentures?

6. What are the advantages of investing in debentures from an investor's perspective?

7. How do companies use debentures as a source of financing, and what are the benefits and risks associated with issuing debentures?

8. How are interest payments on debentures calculated and disbursed to investors?

9. Can debentures be converted into equity shares of the issuing company? If so, how does the conversion process work?

10. What is the role of credit ratings in evaluating debentures, and how do credit ratings impact the interest rates offered to investors?

11. How is the value of debentures affected by changes in market interest rates?

12. What are some key factors to consider when analyzing the risk and return characteristics of debentures?

Reference no: EM133674322

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