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Redemption of Debentures

Debenture hol...

Question

Debenture holders are paid _________ stated amount of interest at specified intervals.

A

fixed

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B

fluctuating

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C

higher

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D

lower

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Solution

The correct option is A fixed
Debenture holders are paid a fixed stated amount of interest at specified intervals. Public issue of debentures requires that the issue be rated by a credit rating agency.

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Similar questions

Q. Which of the following statement is true?
a. A debenture holder is an owner of the company.
b. A debenture holder can get his money back only on the liquidation of the company.
c. A debenture issued at a discount can be redeemed at a premium.
d. A debenture holder receives interest only in the event of profit.

Q. At the time of liquidation, debenture holders are paid-off _____ the shareholders are paid.

Q. Select most appropriate alternative from those given below :

The interest on debentures is transferred to __________.
a) Debentures A/c
b) Profit of Loss A/c
c) Balance Sheet
d) Debenture holders A/c

Q. State True/False with reasons:
Dividend warrants are used to pay interest to the debenture holders.

Q. Whether the following items will be included in National Income? Give reasons for your answer.
(i) Purchase of a second hand machine from a domestic firm.
(ii) Interest received on loans taken by government.
(iii) Leave travel allowance paid to employees by a company.
(iv) Direct purchases made by resident households.
(v) Interest received on debentures by debenture-holders.

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