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The debentures which do… (Class 12 Accountancy 2026, Q6b)

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AccountancyCBSE Class 12 · Board exam 2026, set 67/5/1 · 1 mark · MCQ

CBSE Class 12 Accountancy 2026: question 6(b)

Set in the CBSE Class 12 board exam of 2026, paper 67/5/1, section A, question 6(b), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q6(b) · 1 mark · MCQIssue and Redemption of Debentures

The debentures which do not carry a specific rate of interest are known as :

  1. (A)Irredeemable debentures
  2. (B)Bearer debentures
  3. (C)Specific coupon rate debentures
  4. (D)Zero coupon rate debentures

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 67/5/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

"Coupon" means the interest rate.

Hint 2

How does the investor earn if no interest is paid?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Zero coupon rate debentures carry no stated interest rate; they are issued at a deep discount and redeemed at face value or more.

  2. The investor's return is the difference between issue and redemption price. Option (D).

    1 mark

Answer: (D) Zero coupon rate debentures

Where the marks are

  • Zero coupon rate debentures (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Issue and Redemption of Debentures, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 67/5/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.