Debentures refer to fixed-rate bonds issued by companies, with interest payments and principal repayments scheduled on specific dates. Upon redemption, the principal amount is returned. These instruments are an important source of financing for companies, and their characteristics make them an attractive investment option for investors seeking a steady stream of income. As with any financial instrument, it is crucial to thoroughly understand the terms and conditions of debentures before investing. This will enable investors to make informed decisions and effectively manage their portfolios.
