Question : The debentures may be redeemed at -----
Option 1: At par
Option 2: At premium
Option 3: At discount
Option 4: Both 1 and 2
Correct Answer: Both 1 and 2
Solution : Answer = Both 1 and 2
The debentures may be redeemed at par or at a premium only. Debentures cannot be redeemed at a discount where they are redeemed at a value higher than their face value. Both options, redemption at par and at a premium, are possible depending on the terms specified in the debenture agreement.
Hence, the correct option is 4.