Concept:A debenture holder is a lender to the company, so the reward is the fixed return paid on borrowed capital, not a share of ownership profit.
Explanation:A debenture is a written loan agreement between a company and a lender.
The person who holds a debenture is called a debenture holder.
Debenture holders are creditors of the company, not owners.
Because they are creditors, they do not share in the company's profits and do not receive dividends.
The company pays them a fixed rate of interest regularly for using their money.
This interest is paid whether the company makes a profit or a loss.
Dividends are rewards for shareholders or owners, while profit is the company's earnings and premium is an extra amount above face value.
Therefore, the correct reward given to a debenture holder is the interest paid on the loan.
Answer:A. Interest