The correct answer is A. Redeemable debentures are to be redeemed on the expiry of a certain period.
B. Irredeemable debentures are not to be redeemed at all. They are perpetual in nature.
C. Convertible debentures can be converted into equity shares at the option of the debenture holder.
D. Non-convertible debentures cannot be converted into equity shares.
Debentures are a type of loan that a company can raise from investors. They are considered to be a form of debt financing, as the company is obligated to repay the principal amount of the loan, plus interest, to the investors.
Debentures can be either redeemable or irredeemable. Redeemable debentures have a maturity date, at which point the company must repay the principal amount to the investors. Irredeemable debentures, on the other hand, do not have a maturity date and can be held by the investors indefinitely.
Debentures can also be either convertible or non-convertible. Convertible debentures can be converted into equity shares at the option of the debenture holder. Non-convertible debentures cannot be converted into equity shares.
The type of debenture that a company issues will depend on a number of factors, including the company’s financial situation, its investment objectives, and the preferences of its investors.