Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
When Debentures are convertible into equity shares or in any other security either at the option of the company or the debenture holders is called:
Options:
Convertible Debentures
Non-Convertible Debentures
Specific Coupon Rate Debentures
Zero Coupon Rate Debentures
Correct Answer:
Convertible Debentures
Explanation:
Debentures which are convertible into equity shares or in any other security either at the option of the company or the debentureholders are called convertible debentures. These debentures are either fully convertible or partly convertible