A debenture that is issued bearing a specific interest rate. The coupon rate is specified in the issue, and can either be a fixed or floating rate. The fixed rate is set by the issuer taking into consideration multiple factors such as expected interest rate trajectory, current interest rates, benchmark rates, etc.
The floating rate is usually pegged to a certain bank rate. It changes in response with changes in the benchmark rate, in either direction.
For more, see:
