Instead of paying at the end of the tenure, a portion of debentures will be redeemed at frequent intervals, this is called redemption in .

lump-sum

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instalment

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open market

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conversion

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Solution

The correct option is B instalment
Redemption in installment is similar to the redemption of a term loan. A term loan is generally redeemed in monthly, quarterly, biannual, or annual instalments. In this method, the company pays some part of the principal every year to the debenture holders till the time of maturity.

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