A type of long-term loan granted to companies with fixed interest as well as with redeemable and irredeemable features is referred to as?
Answer Details
A type of long-term loan that has a fixed interest rate and can be redeemed or irredeemable is referred to as a debenture. A debenture is usually issued by a company and it represents a loan that the company has taken from investors. The debenture holders are considered creditors of the company and have a claim on the company's assets. Debentures are often used by companies as a way to raise long-term capital for their operations.