Which of the following option regarding issue and redemption of debenture is not possible in general?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Issued at discount, Redemption at discount
Debentures are redeemed at par or at a premium; a company does not repay its debenture holders less than the face value. So of the usual terms, only redemption at a discount is not found.
Option (1) Issue at premium, Redemption at a premium — A possible term. It is case (vi) in the book.
Option (3) Issued at par, Redemption at a premium — A possible term. It is case (iv).
Option (4) Issued at discount, Redemption at par — A possible term. It is case (ii).
NCERT (2026-27 edition):
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