Debentures with a fixed interest rate are referred to as Specific Coupon Debentures. These financial instruments allow companies to raise capital by issuing bonds to investors. The interest rate, or coupon rate, is predetermined and paid to bondholders at regular intervals. This type of debenture is a popular choice for investors seeking a steady stream of income. It is important for companies to carefully consider the terms of their debentures, as they can significantly impact their financial standing. As a knowledgeable professor of finance, I encourage my students to understand the various types of debentures and their implications on a company's financial strategy.
