When a company is liquidated, the debenture holders have a prior right for which of the following?

Principal amount Interest Both (1)and (2) None of these

Both (1)and (2)

When a company is liquidated, the debenture holders typically have a prior right to the "Principal amount" and interest payments of the debentures they hold. This means that the company's assets will be used to repay the principal amount owed to the debenture holders and interest thereon before any other claims or payments are made.