A document which acknowledge that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically is
Answer Details
A debenture certificate is a document that acknowledges that a company owes a person a stated sum of money with an agreement to pay a fixed rate of interest periodically. It is a type of long-term debt instrument that companies issue to raise funds from the public. When an individual buys a debenture, they are essentially lending money to the company. The company is obligated to pay interest on the debenture at a predetermined rate and return the principal amount at the end of the maturity period. A debenture certificate serves as proof of the company's debt to the holder of the certificate.