JAMB - Commerce (2025 - No. 62)

A source of capital to a public company which attracts a fixed rate of interest is
an ordinary share
a debenture
a subvention
an overdraft

Explanation

A debenture is a type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the
general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond to
secure capital. Like other types of bonds, debentures are documented in an indenture. Debentures have a fixed rate of interest.

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