a company pays a fixed rate of interest in debentures issued for cash to the public . at what rate , will the interest be payable on debentures issued as collateral security ?

Question

a company pays a fixed rate of interest in debentures issued for
cash to the public at what rate , will the interest be payable on
debentures issued as collateral security ?

Manish Kumar · Accepted Answer

Collateral debentures are issued only on default in loan payment
for which collateral is given Since, no debentures are issued, no
interest is paid on such debentures