Question : Which of the following statements is true?
Option 1: Interest on debentures is calculated at fixed rate on its nominal (face) value payable quarterly, half yearly or yearly as per the terms of issue.
Option 2: Rate of interest is prefixed to the debenture, is payable even if the company incurs a loss.
Option 3: Interest on debentures is a charge against profit.
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
1. Interest on debentures is calculated at a fixed rate on its nominal (face) value payable quarterly, half-yearly or yearly as per the terms of issue. 2. The rate of interest is prefixed to the debenture and is payable even if the company incurs a loss. 3. Interest on debentures is a charge against profit.
Question : Which of the following statements is not true?
Question : The effective annual Rate of Interest corresponding to a nominal rate of interest of 13% per annum payable half-yearly is:
Question : What is the effective annual rate of interest corresponding to a nominal rate of 10% per annum payable half-yearly?
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