A manufacturing company has 15,000, 10% Non Convertible Debentures of ₹100 each. How much amount of face value of debentures maturing during the year should be invested before the redemption of Debentures begins?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹2,25,000.
Face value = 15,000 x 100
= 15,00,000
Required invested amount is 15% of face value of debentures
Amount invested = 15,00,000 x 15/100
= 2,25,000