Question

Interest is paid to the person who produces the interest coupon attached to debenture in
case of
​

Answer 1

Interest on debentures is a charge against profits and, therefore, its payment is not subject to the earning of profits.The amount so deducted must be paid to the Central Government on behalf of the debenture-holders.

Answer 2

The answer is bearer debentures:

Explanation:

Bearer Debentures

• "Bearer Debentures" are debentures that are "payable to bearer and whose names do not appear in the debenture holders' registry".
• Interest coupons are attached to the paper, and the holders are paid interest as it becomes due.
• Bearer Debentures can be transferred simply by delivery.
• A debenture pays investors a regular interest rate, sometimes known as a coupon rate.
• Convertible debentures are more appealing to investors because they can be converted to equity shares after a set length of time.