Types of Debentures

IMPORTANT

Types of Debentures: Overview

This topic covers concepts such as, Types of Debentures etc.

Important Questions on Types of Debentures

MEDIUM
IMPORTANT

What are the debentures called that are redeemed at the end of a specific period?

EASY
IMPORTANT

Which debentures are secured by a charge on the assets of the company?

MEDIUM
IMPORTANT

Which type of debentures are issued without any specific maturity period?

MEDIUM
IMPORTANT

What are debentures that can be converted into equity shares at the option of the debenture holder called?

MEDIUM
IMPORTANT

Which type of debenture does not carry any charge on the assets of the company?

MEDIUM
IMPORTANT

What are different types of debentures from the viewpoint of registration

A. Convertible
B. Bearer
C. Redeemable
D. Secured
E. Registered

Choose the correct answer from the options given below:

MEDIUM
IMPORTANT

Match List I with List II

LIST I: Basis of Debenture

A. Tenure
B. Interest rate point of view
C. Security
D. Bearer

LIST II: Types of Debenture

I. Zero coupon rate
II. Irredeemable
III. Registration
IV. Secured

Choose the correct answer from the options given below:"

MEDIUM
IMPORTANT

Based on the following, answer the question:

XYZ Ltd. has been operating in the field of FMCG products in the South Indian market. However, to expand its operation in the northern part of India, it needs additional capital ₹20,00,000 which is raised by issuing 10% Debenture of ₹12,00,000 of ₹100 issued at a discount of 10% to be repayable after 6 years. The rest of the funds is raised by issuing 5% debenture of ₹8,00,000 of ₹100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, the company took a loan of ₹5,00,000 from PNB against 5% debenture of ₹8,00,000 of ₹100 each as a collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

XYZ Ltd. issued another category of debenture which are perpetual in nature. What type of debentures are they called:​​​​​​

MEDIUM
IMPORTANT

XYZ Ltd. has been operating in the field of FMCG products in the South Indian market. However, to expand its operation in the northern part of India, it needs additional capital ₹20,00,000 which is raised by issuing 10% Debenture of ₹12,00,000 of ₹100 issued at a discount of 10% to be repayable after 6 years. The rest of the funds are raised by issuing 5% debenture of ₹8,00,000 of ₹100 issued at 15% premium. These debentures are perpetual in nature. After six years of successful operation in northern India, the company took a loan of ₹5,00,000 from PNB against 5% debenture of ₹8,00,000 of ₹100 each as collateral security. The company successfully ran its operation and managed to pay off its loan within two years.

XYZ Ltd. issues 10% debentures of ₹12,00,000 of ₹100 each at a discount of 10% which will be repayable after 6 years. What type of debenture is it?