Miller Farm Products is issuing a 15-year, unsecured bond. Based on this information, you know that this debt can be described a

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2 years ago

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Rzqust [24] · Answer 1 · 2023-07-31T15:46:19+03:00

Based on this information Miller Farm Products' debt can be described as a debenture.

<h3>What is Debenture?</h3>

A bond or other sort of financial instrument that is secured by collateral is referred to as a debenture.
Debentures must rely on the issuer's trustworthiness and reputation for support because they lack a collateral backstop.
Debentures are commonly issued by both businesses and governments to raise cash or money.
Debentures, like the majority of bonds, may issue periodic interest payments known as coupon payments. Debentures are described in an indenture, much like other kinds of bonds.
A binding legal agreement between bond issuers and bondholders is known as an indenture.
The agreement details the terms of a debt issue, including the maturity date, the frequency of interest or coupon payments, the formula for calculating interest, and other details.
Debentures may be issued by both governments and corporations.

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