How debentures can not be redeemed by a company?

A) Issued at par and redeemable at par
B) Issued at discount and redeemable at par
C) Issued at a premium and redeemable at par
D) Issued at par and redeemable at a premium
E) Issued at a discount and redeemable at a premium
F) Issued at a premium and redeemable at a premium
G) Issued at a discount and redeemable at discount
H) Issued at a par and redeemable at discount
I) Issued at a premium and redeemable at discount

Choose the correct answer from the options given below.

GHI

The correct answer is option 2- GHI.

When a company issues debentures, it usually mentions the terms on which they will be redeemed on their maturity. Redemption of debentures means discharge of liability on account of debentures by repayment made to the debenture holders. Debentures can be redeemed either at par or at a premium. Depending upon the terms and conditions of issue and redemption of debentures, the following six situations are commonly found in practice.
(i) Issued at par and redeemable at par
(ii) Issued at discount and redeemable at par
(iii) Issued at a premium and redeemable at par
(iv) Issued at par and redeemable at a premium
(v) Issued at a discount and redeemable at a premium
(vi) Issued at a premium and redeemable at a premium

Thus, debentures can not be redeemed at a discount so the GHI is the correct option.