In case debentures are issued at discount but redeemable at par. If the face value of debenture is Rs. 100 and the discount is 10%. It means company will get Rs. 90 and it will pay back ________ at the time of redemption

None of these

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Rs 90

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Rs 100

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Rs 110

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Solution

The correct option is C
Rs 100

At the time of redemption, pay back amount = Face value of debenture = Rs 100.
Because debentures are redeemed at par.

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In case debentures are issued at discount but redeemable at par. If the face value of debenture is Rs. 100 and the discount is 10%. It means company will get Rs. 90 and it will pay back ________ at the time of redemption

The correct option is C Rs 100 At the time of redemption, pay back amount = Face value of debenture = Rs 100. Because debentures are redeemed at par.

The correct option is C
Rs 100

At the time of redemption, pay back amount = Face value of debenture = Rs 100.
Because debentures are redeemed at par.