Question

Which of the following correctly pairs each type of debenture with its defining characteristic?

A Secured debentures backed by no collateral; Convertible debentures can only be converted to preference shares; Redeemable debentures never repaid by the company
B Secured debentures backed by no specific asset; Unsecured debentures backed by a floating charge on all assets; Irredeemable debentures repaid on demand by debenture holders
C Secured debentures backed by a charge on the company’s assets (either fixed or floating); Convertible debentures can be converted into equity shares at a specified ratio and time; Irredeemable debentures have no fixed maturity and are not repaid during the company’s normal life
D Non-convertible debentures converted to equity after 3 years mandatorily; Secured debentures backed by government guarantee; Redeemable debentures held permanently by the investor
E Unsecured debentures carry a higher interest rate than secured debentures because they carry more risk for the investor; Irredeemable debentures are repaid at par on the stock exchange
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