Analyze the case given below and answer the questions that follow: Anil Technologies limited company issued 5,000, 9% Debentures of Rs. 100 each at a premium of Rs. 20 payable as follows: 1. Rs. 40 including premium of Rs. 10 on application 2. Rs. 40 including premium of Rs. 10 on allotment 3. Balance on first and final call Applications were received for 5,000 debentures and allotment was made to all the applicants. All the calls were made and amounts received.

What does 9% stand for as written along with the debenture?

Rate of dividend Rate of interest Rate of compensation None of the above

Rate of interest

In 9% debentures the 9% is the rate of interest payable by the company.