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Question
Which of the following statement is false?
Options
A debenture is a form of public borrowing.
It is customary to prefix debentures with the agreed rate of interest.
Debenture interest is a charge against profits.
The issue price and redemption value of debentures cannot differ.
MCQ
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Solution
The issue price and redemption value of debentures cannot differ.
Explanation:
Debentures can be issued at par, discount, or premium and redeemed at par, discount, or premium, so the issue price and redemption value of debentures can differ.
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Concept of Sinking Fund in Redemption of the Debenture
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