Question : If a company issued 1,000, 12% debentures of 100 each at a premium of 10%. Here, in 12% debentures, 12% represents:
Option 1: Rate of dividend
Option 2: Rate of tax
Option 3: Rate of interest
Option 4: None of the above
Correct Answer: Rate of interest
Solution : If a company issued 1,000, 12% debentures of ₹100 each at a premium 10%. Here, 12% in 12% debentures represents rate of interest. Hence, the correct answer is Option 3.