Explain about the interest payments, Financial Management

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Explain about the Interest payments

Debenture interest is generally paid semi-annually however annual payments aren't uncommon.  Usually there are registered debentures on which interest is payable to the debenture holder whose name appears on register when payment is made. In developed countries, coupon bonds are also available which have a series of attached coupons which are clipped off at appropriate times and sent to a bank for collection of the interest. Certainly, now with Electronic Clearing System, the interest can be directly deposited in the bank account of the bond holder.

 


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