Vidyalelo
Commerce · Q111

Business and Commerce

Graduate and Post Graduate · Commerce · question 111

Q111

_________ Debentures are to be redeemed on the expiry of a certain period.

A.
Redeemable
Answer
B.
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.