Redemption of Debenture can be done by many ways. Identify the wrong option.
(
This question was previously asked in
Shift 11/06/2023 3:30 PM - 6:30 PM
A
Redemption of Debenture by Payment in Lumpsum
B
Redemption of Debenture by giving tangible Assets
C
Redemption of Debenture by payment in instalments
D
Redemption of Debenture by conversion into shares or new Debentures
Correct Answer
Redemption of Debenture by giving tangible Assets
Detailed Explanation
The wrong option is:
(2) Redemption of Debenture by giving tangible Assets
Redemption of debentures is typically done by payment in lump sum, payment in installments, or by conversion into shares or new debentures. Giving tangible assets is not a common method for redeeming debentures. Debenture redemption is generally associated with the repayment of the debenture's principal amount along with any accrued interes
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