👉 Debentures are a type of bond that is issued by companies to investors. They represent an obligation to pay back money in the future, but they do not have a fixed interest rate or payment schedule. Instead, the issuer pays out the principal amount when it is due and has the right to receive interest payments at a set rate. Debentures can be issued by corporations, governments, or other organizations for various purposes such as debt financing, equity investment, or other financial transactions.
