Question: Debentures are long - term, unsecured debt securities . Typically, a debenture has a term of 1 0 to 3 0 years. Debentures usually have

Debentures are long

-

term, unsecured debt securities

.

Typically, a debenture has a term of

10

30

years. Debentures usually have indentures. An indenture is a contract that states the rights of the debenture holders. For example, an indenture defines what acts constitute default by the corporation and what rights the debenture holders have upon default. It may place restrictions on the corporation

s right to issue other debt securities

.

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