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Question

The face value of debenture is Rs. 100 and the debentures are issued at par and redeemed at par, it means company will pay back .

A
Rs. 100
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B
Rs. 110
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C
Rs. 90
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D
Rs. 200
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Solution

The correct option is A Rs. 100
When debentures will be redeemed at their face value/nominal value, they are said to be redeemed at par. Face value of debenture is Rs. 100 and the debentures are issued at par and redeemed at par, it means company will pay back to the debenture-holder Rs. 100.

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