Suppose debentures are issued for consideration other than cash, debentures may:
A. Not be issued at discount
B. Be issued at par
C. Be issued at a premium
D. Be issued at a discount
Choose the correct answer from the options given below:
Suppose debentures are issued for consideration other than cash, debentures may:
A. Not be issued at discount
B. Be issued at par
C. Be issued at a premium
D. Be issued at a discount
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 4
When debentures are issued for consideration other than cash there is no statutory restriction on the terms: they may be issued at par, at a premium, or at a discount, the number depending on the purchase consideration and the issue price. Statement A is therefore incorrect, leaving B, C and D.
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