The correct answer is option 3- Bearer Debentures.
Bearer debentures are the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures. Interest on debentures is paid to a person who produces the interest coupon attached to such debentures.
OTHER OPTIONS
- Specific Coupon Rate Debentures: These 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.
- Registered Debentures: Registered debentures have detailed information about debenture holders, including their names, addresses, and holdings, recorded in a company-maintained register. These debentures can only be transferred through a formal transfer deed.
- Zero Coupon Rate Debentures: Zero coupon rate debentures do not carry a specific interest rate. To compensate investors, these debentures are issued at a substantial discount, with the difference between the nominal value and the issue price representing the interest for the debenture's duration.
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