Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
On which type of debentures Interest on debentures is paid to a person who produces the interest coupon attached to such debentures?
Options:
Zero Coupon Rate Debentures
Specific Coupon Rate Debentures
Registered Debentures
Bearer Debentures
Correct Answer:
Bearer Debentures
Explanation:
Bearer debentures are the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures Interest on debentures is paid to a person who produces the interest coupon attached to such debentures.