Asked by Michaela Elizabeth on Jun 23, 2024
Verified
Debentures are the same as indentures.
Debentures
A type of debt instrument that is not secured by physical assets or collateral but backed solely by the general creditworthiness and reputation of the issuer.
Indentures
Formal legal agreements, contracts, or documents, especially those that bind someone to work for another for a specified time, often used in the context of bonds or loans.
- Grasp the differences between debentures, indentures, and their significance.
Verified Answer
SK
SANDHYA KOTWANIJun 27, 2024
Final Answer :
False
Explanation :
Debentures and indentures are not the same thing. Debentures are a specific type of bond that is not secured by specific assets, while indentures refer to a legal agreement between a borrower and lender that outlines the terms of a bond issuance.
Learning Objectives
- Grasp the differences between debentures, indentures, and their significance.