When amount to be paid to debentureholders is more than their face value, they are said to be redeemed at .

par

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premium

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discount

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interest

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Solution

The correct option is B premium
When amount to be paid to debentureholders is more than their face value/nominal value, they are said to be redeemed at premium. The amount of premium payable on redemption of debenture is credited to serparate account called "Premium on redemption of Debenture Account" and will continue to appear under the head 'Non-Current Liabilities'.

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