Question : Which of the following are the features and characteristics of debentures?

Option 1:

Debenture is a written document or certificate acknowledging debt by the company.

Option 2: Mode and period of repayment of principal and interest is fixed., it is borrowing of the company.

Option 3: Rate of interest on the debenture is specified. It is a practice to prefix 'Debentures' with the rate of interest. For example, if the rate of interest is 9%, the title of the debentures will be '9% Debentures'.

Option 4: All of the above

Question : Which of the following statements is false?

Option 1: Debenture is debt of the company. Therefore, a debenture holder is a lender.

Option 2: Debenture holder gets interest at the stated rate whether the company earns profit or not.

Option 3: Debentures cannot be issued at discount.

Option 4: Debentures can be converted into shares.

Question : Which of the following statements is true?

Option 1: The debenture is a borrowing of the company.

Option 2: Debenture is normally secured by way of charge on the assets of the company.

Option 3: Interest on Debentures is a charge against profit.

Option 4: All of the above 

Question : Which of the following statements is true?

Option 1: The debenture is a borrowing of the company.

Option 2: Debenture is normally secured by way of charge on the assets of the company.

Option 3: Interest on Debentures is a charge against profit.

Option 4: All of the above 

Question :

----------------Debentures are those debentures that are repayable by the company at the end of a specified period or by installments during the existence of the company.

Option 1: Redeemable debentures 

Option 2: Irredeemable debentures 

Option 3: Secured debentures 

Option 4: Unsecured debentures 

Question : The coupon rate of a debenture is:

Option 1: The interest rate paid on the debenture
 

Option 2: The face value of the debenture
    

Option 3: The market value of the debenture

Option 4: The conversion price of the debenture