passwella.
Menu

WAEC Commerce 1997 Question 18

Question 18

Business Finance

One of the characteristics of a debenture is that

  1. A.it yields a fixed rate of dividend
  2. B.it has no redemption date
  3. C.it yields a fixed rate of interest
  4. D.its holder has a voting right
  5. E.the holder bears more risk than others
Show the answer and explanation

Answer: C (it yields a fixed rate of interest)

Explanation

A debenture is a loan to the company that earns a fixed rate of interest.