Question

In the chapter, Issue and redemption of Debentures, it is written like this : 1,000 10% debentures of Rs 100 each.
Now, 1,000 means 1,000 debentures are being issued and rs 100 is the cost per debenture, then what is this 10 %. What is the meaning of this ?

Answer 1

Dear Student,

Arpit guessed it right!!

1,000 = No. of debentures issued by the company
10% = Rate of interest to be paid to the debentureholders
Rs 100 = Face value of a debenture

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