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Question : Perpetual debenture are also known as

Option 1: Irredeemable Debenture

Option 2: Secured Debenture

Option 3: Unsecured Debenture

Option 4: None of the above


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 26th Jan, 2024

Correct Answer: Irredeemable Debenture


Solution : It is because the corporation does not provide any assurance regarding the repayment of money borrowed by issuing such debentures, irredeemable debentures are also known as perpetual debentures. These bonds are repayable upon a company's dissolution or after a protracted length of time.

Hence the correct answer is option 1.

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