Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Debentures can be redeemed at............
Options:
Par
Premium
Discount
Both options 1 and 2
Correct Answer:
Both options 1 and 2
Explanation:
Debentures will be redeemed at a discount only when the company is able to buy the debentures in the open market at a price lower than the face value of the debentures otherwise debentures are redeemed at par and premium.