Question 49
Business FinanceA type of long-term loan granted to companies with fixed interest as well as with redeemable and irredeemable features is referred to as
- A.a debenture
- B.a bond
- C.a term loan
- D.an overdraft
Show the answer and explanation
Answer: A (a debenture)
Explanation
A debenture is a long-term loan to a company carrying fixed interest, and it can be redeemable or irredeemable.