In the case of redeemable debentures, when can they be redeemed?
Answer & explanation
Correct answer: option 3
Redeemable debentures can be redeemed by the company during its lifetime at the discretion of the company, and this is a key feature that distinguishes them from irredeemable (perpetual) debentures. The company has the flexibility to repay the principal amount to debenture holders on or after a predetermined date, which is often specified in the terms of the debenture issuance.