Rate of Interest on debenture is :-

Correct Answer:

(C) Fixed rate

Why This Answer Is Correct?

Debentures carry a fixed rate of interest which is decided at the time of issue and remains the same throughout the life of the debentures, regardless of the company’s profit or loss.

Why Other Options Are Incorrect?

(A) 12% per annum — Incorrect
This is only an example of a rate. Debentures can be issued at different rates, not always at 12%.

(B) 20% per annum — Incorrect
This is also just a specific rate, not a general characteristic of debentures.

(D) 15% per annum — Incorrect
Like the other percentages, this is not universally applicable to all debentures.