Practicing Success
From the following select the method(s) of Redemption of Debentures. (A) Lumpsum payment made at the end of specified period of time. Choose the correct answer from the options given below. |
(A) and (B) only (D) only (C) and (E) only (A), (B), (C) and (E) only |
(A), (B), (C) and (E) only |
The correct answer is Option (4) → (A), (B), (C) and (E) only Redemption of debentures refers to extinguishing or discharging the liability on account of debentures in accordance with the terms of issue. In other words redemption of debentures means repayment of the amount of debentures by the company. There are four ways by which the debentures can be redeemed- *Selling fixed Assets in open market is a financial transaction not any method of redemption. |