Redemption of Debentures Quiz

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Questions and Answers

What is the person to whom debentures are issued known as?

  • Debentureholder (correct)
  • Debenture Beneficiary
  • Redemption Agent
  • Debenture Issuer

What is the process of repayment of Debentures by the company known as?

  • Redemption of Debentures (correct)
  • Issuance of Debentures
  • Debenture Redemption Investment
  • Debentureholder Identification

Which method of redemption of Debentures is NOT mentioned in the text?

  • Payment in instalments by draw of lots
  • Purchase of own Debentures in the open market
  • Redemption through conversion to equity (correct)
  • Payment in lump sum at the end of the specified period

What are the sources of redemption of Debentures mentioned in the text?

<p>Out of Profits, Out of Capital, Issuing new Debentures (C)</p> Signup and view all the answers

In which case is it NOT possible for the company to borrow money from the bank, issue new Debentures, or issue shares for redemption of Debentures?

<p>Redemption through conversion to equity (D)</p> Signup and view all the answers

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