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Monday, March 21, 2011

Advantages and Disadvantages of Debentures

The Advantages of Debentures are as follows:

1) The holders of the debentures are entitled to a fixed rate of interest. It can be presented as "5% Debenture".

2) Debentures are for those who want a safe and secure income as they are guaranteed payments with high interest rates.

3) They have priority over other unsecured creditors when it comes to debt repayment.

The Disadvantages of

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