The debentures which are payable on the expiry of the specific period are:

Redeemable Debentures

The correct answer is option 2- Redeemable Debentures.

The debentures which are payable on the expiry of the specific period are Redeemable Debentures.

Reedemable Debentures: It refers to the repayment of debentures by the company to the debenture holders. In this process, debenture holders get payment for the debentures they were issued, and the repayment is made as per terms and conditions determined at the time of debenture issue. It may be redeemable at par, discount or premium.

OTHER OPTIONS

• Irredeemable debentures are also known as Perpetual Debentures because the company does not give any undertaking for the repayment of money borrowed by issuing such debentures. These debentures are repayable on the winding-up of a company or on the expiry of a long period.

• 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.