Concept:A debenture is borrowed capital, so the holder earns a fixed interest return on that loan.
Explanation:Debenture holders are creditors of the company, not owners.
The company agrees to pay them interest at a fixed rate for the money lent.
This interest is paid regularly whether the company makes a profit or incurs a loss.
It is treated as an expense in the company's accounts, not as a share of profit.
Shareholders receive dividends out of net profit, and share bonuses come from retained earnings.
But a debenture holder's entitlement is strictly to interest on the loan.
Therefore, the correct return on a debenture holding is the interest paid to the holder.
Answer:B. interest