Question

Which of the following statement is Correct?

Options

• A debentureholder is an owner of the company.

• A debentureholder can get his amount back only on the liquidation of the company.

• A debenture issued at a discount can be redeemed at a premium.

• A debentureholder receives interest only if the company earns profit.

Answer 1

A debenture issued at a discount can be redeemed at a premium.

Explanation:

Debentures may be issued at par, premium, or discount and can also be redeemed at par or premium. Hence, a debenture issued at a discount can be redeemed at a premium.