Concept:Debentures may be classified according to the type of security or charge created on company assets.
A debenture secured by a charge on fixed assets is known as a mortgaged debenture.
Explanation:A mortgaged debenture gives the debenture holders a legal claim over the fixed assets of the company.
If the company fails to pay interest or repay the principal, the holders can sell those assets to recover their money.
In contrast, a naked or unsecured debenture has no charge on any asset.
Redeemable and irredeemable debentures refer to the repayment period, not to security.
Since the question specifically mentions security by fixed assets, the correct classification is a mortgaged debenture.
Answer:A. Mortgaged Debenture