(A) Secured Debentures are backed by a specific charge on the assets of the company. If the company defaults, debenture holders can recover their dues by selling these assets. This matches with (IV).
(B) Redeemable Debentures have a fixed maturity period and are repaid on expiry of that specific period. These are the most common type of debentures. This matches with (III).
(C) Zero Coupon Rate Debentures are issued at a discount to their face value and do not carry any periodic interest payment. The return to investors comes from the difference between issue price and redemption value. This matches with (II).
(D) Unsecured Debentures (also called naked debentures) are not backed by any specific charge on the company's assets. They rely solely on the general creditworthiness of the company. This matches with (I).
Correct matching:
- (A) → (IV)
- (B) → (III)
- (C) → (II)
- (D) → (I)
Option 2 is correct.