Question

The Debentures that are payable on the expiry of the specific period either in lumpsum or in instalments during life time of the company are called:

• A. Secured Debentures
• B. Redeemable Debentures
• C. Perpetual Debentures
• D. Specific Coupon Rate Debentures

Hint:

Redeemable Debentures have fixed maturity and repayment terms, unlike perpetual debentures.

Answer 1

The Correct Option is B

Step 1: Understand types of debentures
Redeemable Debentures are repayable at the end of a fixed period or in installments during the company's lifetime.
Perpetual Debentures have no fixed maturity and are not repayable.
Secured Debentures are backed by assets but may be redeemable or perpetual.
Specific Coupon Rate Debentures refer to the interest rate, not repayment terms.
Step 2: Conclusion
Therefore, debentures payable after a specific period or in installments are Redeemable Debentures.