Kishore V, SME and ACW at Edumarz
Debentures are often issued for cash.
However, debentures can also be granted for non-cash reasons.
It is possible that a firm will buy another company or purchase assets from a vendor, and instead of paying cash, the corporation will settle the payment by issuing debentures to the vendors.
Debentures can be issued in three different ways:
- par,
- discount, or
- premium.