Q111
_________ Debentures are to be redeemed on the expiry of a certain period.
A.
Redeemable
AnswerB.
Irredeemable
C.
Convertible
D.
Non-convertible
Answer: Option A
Solution
Answer: Option A
Solution:
Redeemable Debentures are to be redeemed on the expiry of a certain period. Debenture can be redeemed in various ways by a company. It can pay a lump sum on the date of maturity or may pay in annual installments. A company can also purchase it from the open market or convert to an equity share in case of convertible debentures. Innovative ways like call or put option can also be utilized.