Question

Assertion (A): Debentures can be issued at a discount of more than 10% of the face value.

Reason (R): There are no restrictions on the issue of debentures at a discount.

In the context of the above two statements, which of the following is correct?

Options

• Both (A) and (R) are correct and (R) is the correct reason of (A).

• Both (A) and (R) are correct but (R) is not the correct reason of (A).

• Only (A) is correct.

• Both (A) and (R) are wrong.

Answer 1

Both (A) and (R) are correct and (R) is the correct reason of (A).