A document which acknowledges that a company owes a named person a stated sum of money with the promise that a stated interest rate will be paid periodicall...

A document which acknowledges that a company owes a named person a stated sum of money with the promise that a stated interest rate will be paid periodically is called

Answer Details

A document which acknowledges that a company owes a named person a stated sum of money with the promise that a stated interest rate will be paid periodically is called a debenture certificate. Debentures are long-term loan instruments issued by a company that carry a fixed rate of interest and are usually secured against the assets of the company. The holder of a debenture is a creditor of the company, and the company is obligated to repay the principal amount of the debenture along with the interest as per the terms of the debenture certificate.