Multiple choice

Convertible debentures are those on which

  1. accumulated interest payable is converted into equity shares

  2. interest is not paid when the company is running on a loss

  3. interest is payable and keeps on accumulating, if not paid

  4. equity shares may be exchanged at the option of the debentures holders
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Convertible debentures provide the holder with the option to convert their debt instrument into equity shares of the company after a specified period.

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