What financial instrument is issued by a company for a fixed rate of interest over a specific timeframe?

A financial instrument issued by a company for a fixed rate of interest over a specific timeframe is known as a debenture. Debentures are a type of long-term debt instrument that companies use to raise capital. They are essentially loans that investors provide to the company, in return for periodic interest payments at a fixed rate and the return of the principal amount at maturity. This makes debentures crucial for businesses seeking to fund major projects or expand operations without giving up ownership or control of the company.

In contrast, stocks and equities represent ownership in a company, not a debt obligation, and do not typically come with fixed interest payments. Bonds are similar to debentures, as they also represent debt, but they can be issued by governments as well as corporations, and may have different characteristics. Stocks and equities deal primarily with ownership stakes, while debentures specifically relate to borrowing and interest obligations to investors over a predetermined period.