Question

What is meant by ‘debentures issued at par but redeemable at premium’?

Answer 1

Debentures are said to be issued at par when they are issued at their face value, and redeemable at a premium means the company will repay more than the face value at the time of redemption. For example, if a ₹100 debenture is issued at ₹100 but redeemed at ₹110, it is issued at par and redeemable at a premium.