Arrange the following in the correct sequence in the context of debenture:(A) Payment to debenture-holders(B) Creation of DRR (Debenture Redemption Reserve)(C) Issue of debentures(D) Redemption becomes dueChoose the correct answer from the options given below:
- A(A), (B), (C), (D)
- B(A), (C), (B), (D)
- C(B), (A), (D), (C)
- D(C), (B), (D), (A)
Solution & Step-by-step Explanation
The chronological lifecycle steps for a debenture setup are:First, the Issue of debentures (C) takes place to raise funds.Out of profits earned over time, the Creation of DRR (B) is executed before redemption begins.On the specified maturity date, the Redemption becomes due (D).Finally, the actual Payment to debenture-holders (A) is dispatched.Hence, the exact orderly sequence is (C), (B), (D), (A).