Question : Which of the following statements is true?
Option 1: A debenture issue at discount can be redeemed at premium
Option 2: A debenture holder is an owner of the company
Option 3: A debenture holder can get his money back only on the liquidation of the company
Option 4: A debenture holder receives interest only in the event of profit
Correct Answer: A debenture issue at discount can be redeemed at premium
Solution : Debentures are referred to as being issued at a discount and redeemable at a premium when they are issued below their par value (or face value) but are redeemed at a price higher than their par value. Loss on issue of debenture is considered as the difference between the issue price and redemption price.
Hence the correct answer is option 1.
Question : Which of the following statements is false?
Question : Debenture holders have first right in the event of a company's liquidation for:
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