Answer-How is the return on debentures determined?

Explanation Debenture holders receive a return on their investment through interest payments, which are a fixed rate of return paid by the company to the investor. The interest rate is determined at the time the debenture is issued.

Question

How is the return on debentures

determined?

A Through interest payments

B Through dividend payments

C Through principal repayments

D Through share buybacks

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How is the return on debentures

Solution

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