For debentures who decides rate of interest

Question

For debentures who decides rate of interest?

Answer 1

Company decides the rate of interest for the debentures where debenture is just an easy document that is employed to make either debt or admit the debt. When the company issues it then it does it in the type of a certificate which acknowledges gratitude. The debentures are issued to the lenders in the Company's Common Seal and alongside the charge on the assets of the Company. Whoever contains the debentures does not have the right to hold the meeting with the company. The rate of interest with that the debentures gets issued are named as coupon rate. They are of two types which are illustrated below:

i) Floating rate of interest is in accordance with the rate of bank and reward of risk.

ii) Fixed Rate