Question

What are the methods that are followed while redeeming a debenture?

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Answer 1

: Methods that are followed while redeeming a debenture are,

Redemption of Debentures in a Lump sum on maturity

Redemption of Debentures out of the capital

Redemption of Debentures out of cash

Answer 2

Answer:

Ways to Redeem Debentures

1.1 Lump Sum Payment on a Fixed Date.

1.2 Payment in Annual Installment.

1.3 Debenture Redemption Reserve / Sinking Fund.

1.4 Buy from Open Market.

1.5 Conversion into Shares.

1.6 Call and Put Option.