The debentures of which payment is made on the expiry of specific period. Answer in a word / phrase / term.
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The debentures of which payment is made on the expiry of specific period.
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Redeemable Debentures.
The debentures of which payment is made on the expiry of specific period.
ANSWER ⏬⏬
Redeemable Debentures.
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The debentures in which the payment is made on the expiry of specific period are known as redeemable debentures.
- Debentures, on which, as per the terms of the issue, the balance is to be repaid after a specified period of time, are considered as debentures that can be repaid. They can be redeemed only after a defined time has expired.
- The company is legally obliged to refund the principal amount on that date to the debenture holders.
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