👉 In finance and economics, a debenture is a debt instrument that is issued by a company or other entity to raise capital. It involves issuing bonds with interest payable at maturity based on an agreed-upon rate of return. The issuer may also provide guarantees for the repayment of the debt if the bondholder defaults. Debentures can be either callable or uncallable, depending on whether the holder is able to exercise the right to call the bonds back before they mature. A callable debent
