Question

Assertion (A): Interest on debentures issued as a collateral security is paid on nominal value of debentures.

Reason (R): Interest on such debentures is paid quarterly, half-yearly or yearly, as per the terms of issue.

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 wrong.