redeemable debentures
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The debentures whose cost will be redeemed by the issuer(company) after a stipulated or agreed period or else at some point of time during the life of the company(incase of cumulative debentures)...are called as redeemable debentures..... But the debentures whose cost will not be redeemed by the issuer of the debentures after a stipulated time or agreed period or else at some point of time during the life time of the company...they are called as irredemable debentures...
eg: 15% debentures for 5years..."these debentures earn 15 % interest for 5 years each and at the end of 5th year or along with the interest of the 5th year debentures cost is paid back hence they are called as redeemable debentures..
suppose if they are 15% irredemable debentures..then interest will be paid every year till the closure of the company..cost is not paid back..however irredemable debentures are restricted in many countries
eg: 15% debentures for 5years..."these debentures earn 15 % interest for 5 years each and at the end of 5th year or along with the interest of the 5th year debentures cost is paid back hence they are called as redeemable debentures..
suppose if they are 15% irredemable debentures..then interest will be paid every year till the closure of the company..cost is not paid back..however irredemable debentures are restricted in many countries
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