A debenture pays a regular interest rate or coupon rate return to investors. Convertible debentures can be converted to equity shares after a specified period, making them more appealing to investors. In the event of a corporation's bankruptcy, the debenture is paid before common stock shareholders.

How often do debentures pay interest?

5. What is the interest rate on the 2020 Debentures and when is interest paid? Interest is paid in cash at a rate of 6% per annum. Interest is paid monthly in arrears on the last day of each month commencing February 29, 2016 (each, an “Interest Payment Date”).

Is a debenture interest?

In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. ... The interest paid to them is a charge against profit in the company's financial statements.