BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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DCF
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Debentures
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Covenant
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CRAs
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Detailed explanation-1: -Convertible debentures are long term financial instruments that a company can transform into equity shares after a fixed period of time. They are usually unsecured bonds with no collateral to back up their debt.
Detailed explanation-2: -Debentures are unsecured bonds issued by corporations to raise debt capital. Because they are not backed by any form of collateral, they are inherently more risky than an otherwise identical note that is secured.
Detailed explanation-3: -Unsecured bonds, also known as debentures, are backed by the issuer’s “full faith and credit” rather than a specific asset. In other words, the investor has the promise of repayment from the issuer but no entitlement to any specific collateral.
Detailed explanation-4: -Which of the following is an unsecured corporate debt security? Explanation: Debentures are unsecured. Mortgage bonds are backed by property.