The income accruing to debenture holders is called
Question 1 Report
The income accruing to debenture holders is called
Answer Details
The income accruing to debenture holders is called Interest.
Debentures are a type of debt instrument that companies use to raise capital. When a company issues debentures, it agrees to pay a fixed rate of interest to the debenture holders at regular intervals until the maturity of the debenture. The interest payment is usually made on a yearly or half-yearly basis.
Unlike dividends, which are a share of a company's profits paid to shareholders, debenture holders do not share in the company's profits. Instead, they receive a fixed interest payment that is determined at the time the debentures are issued.
Therefore, the correct option is interest.
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