Question

The issue of debentures more than face value of debentures. Answer in a word / phrase / term.

Answer 1

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The issue of debentures more than face value of debentures.⤵️⤵️⤵️


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Answer 2

The issue of debentures more than the face value of debentures is known as debentures at premium.

• A debenture is one of a company's most common types of long-term loans. It is typically a mortgage to be repaid on a particular date, but some debentures are irredeemable investments
• Debentures are sold at a premium when the amount obtained is greater than the debentures nominal value or the face value.
• For instance, if Rs. 2000 debenture is offered at 2,050, it is a case of premium debenture issue. The surplus of the issue price is premium over the face value.