The Debentures that are payable on the expiry of the specific period either in lumpsum or in installments during life time of the company are called..........

Redeemable Debentures

The correct answer is option (2) : Redeemable Debentures

Redeemable debentures, also known as redeemable bonds, are debt instruments issued by a company that comes with a specific maturity date at which the issuing company is obligated to repay the principal amount to the debenture holders. Unlike non-redeemable or irredeemable debentures, which do not have a fixed maturity date, redeemable debentures have a predetermined redemption date. Redeemable debentures have a specified maturity date, at which point the issuing company is required to repay the principal amount to the debenture holders. Investors who purchase redeemable debentures are essentially making a fixed-term investment. They expect to receive the principal amount back on the redemption date. Like other types of debentures, redeemable debentures may pay periodic interest to debenture holders. The interest rate is specified at the time of issuance. The redemption of debentures can occur in various ways. The issuing company may choose to redeem all the debentures at once on the maturity date, or it may have the option to redeem them in installments over time.