Question : Which of the following statements is true?

Option 1: Interest on debentures is payable only when the Company earns profits.

Option 2: Debentures secured by a charge on assets of the company entitle the debenture holders to take possession of those assets even if their payment is made as per terms.
 

Option 3: Debentures secured by a floating charge on the assets of the company entitle their holders to receive their payment in priority to first charge holders from the sale of such assets.
 

Option 4: Deep Discount Bonds are issued at a price substantially below the maturity value.

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 :

The debentures which are secured by either a fixed charge or a floating charge on the assets of the company. A charge on the assets of the company is registered with the Registrar of Companies are called as

Option 1: Secured debentures 

Option 2: Unsecured debentures 

Option 3: Irredeemable debentures

Option 4: Convertible debentures 

Question : Which of the following statements is not true?

Option 1: Coupon rate is a specified interest rate payable on debenture.
 

Option 2: Zero Coupon Bonds are issued  with a specified interest rate.
 

Option 3: Deep Discount Bonds are issued at a price substantially below the maturity value.

Option 4: In India, debentures issued by Companies have necessarily to be secured.