Question:medium
On 1st April, 2024, EE Ltd. issued 3,000, 9% Debentures of ₹ 50 each at a premium of 5%, redeemable at a premium of ₹ 10 per debenture after five years. Interest on the debentures was to be paid on half-yearly basis on 30th September and 31st March. Interest on debentures for the year ended 31st March, 2025 will be:
On 1st April, 2024, EE Ltd. issued 3,000, 9% Debentures of ₹ 50 each at a premium of 5%, redeemable at a premium of ₹ 10 per debenture after five years. Interest on the debentures was to be paid on half-yearly basis on 30th September and 31st March. Interest on debentures for the year ended 31st March, 2025 will be:
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Interest on debentures is always calculated on the \textbf{face value} (not on issue price or redemption value). Formula:
\[
\text{Interest} = \text{Number of Debentures} \times \text{Face Value per Debenture} \times \text{Rate of Interest}
\]
Premiums or discounts on issue/redemption do not affect interest calculation!
Updated On: Mar 9, 2026
- ₹ 6,750
- ₹ 15,000
- ₹ 7,500
- ₹ 13,500
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The Correct Option is D
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