Match List-I with List-II.

Choose the correct answer from the options given below:

(A)-(IV), (B)-(III), (C)-(II), (D)-(I)

The correct answer is option 2- (A)-(IV), (B)-(III), (C)-(II), (D)-(I).

(A) Secured Debentures-(IV) a charge is created on the assets of the company. 
Secured debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default. The charge may be fixed or floating. A fixed charge is created on a specific asset whereas a floating charge is on the general assets of the company. The fixed charge is created against those assets which are held by a company for use in operations not meant for sale whereas floating charge involves all assets excluding those assigned to the secured creditors.

(B) Redeemable Debentures-(III) are payable on the expiry of the specific period. 
Redeemable debentures are those which are payable on the expiry of the specific period either in lump sum or in instalments during the life time of the company. Debentures can be redeemed either at par or at premium.

(C) Zero Coupon Rate Debentures-(II) do not carry a specific rate of interest. 
Zero Coupon Rate debentures do not carry a specific rate of interest. In order to compensate the investors, such debentures are issued at substantial discount and the difference between the nominal value and the issue price is treated as the amount of interest related to the duration of the debentures.

(D) Unsecured Debentures-(I) do not have a specific charge on assets of the company. 
Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default. Normally, these kinds of debentures are not issued. Unsecured debentures are also known as naked debentures.