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Question
Answer the following question in one sentence.
What are ‘convertible debentures’ ?
Solution
Convertible Debentures : -
Convertible Debentures are those which can be converted either partly or wholly into equity shares after the completion of a definite period. The rate of interest and date of conversion is decided at the time of issue. The interest is paid up to the date of conversion. On conversion the debenture holders are eligible for dividends and other rights and privileges of shareholders.
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