Which of the following debentures do not have a specific charge on the assets of the company?

Unsecured

The correct answer is option 2- Unsecured.

Unsecured debentures do not have a specific charge on the assets of the company.

Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default. Normally, these kinds of debentures are not issued. 

OTHER OPTIONS

• Redeemable debentures are those which are payable on the expiry of the specific period either in lump sum or in instalments during the life time of the company. Debentures can be redeemed either at par or at premium.

• Specific Coupon Rate Debentures are issued with a predetermined interest rate, known as the coupon rate. This rate can be fixed or floating, with floating rates often tied to the bank rate.

• Zero Coupon Rate debentures do not carry a specific rate of interest. In order to compensate the investors, such debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures.