A Trust Deed is a legal document executed by a company in favor of trustees to protect the interests of debenture holders. It must be prepared and executed before the public issue of debentures to define the terms, conditions, and security provided for the debt.

Statement 1 is incorrect because shares represent ownership capital, while debentures represent debt/borrowed capital. Statement 2 is correct because shareholders receive dividends as a share of profits, whereas debenture holders receive fixed interest payments as compensation for lending money to the company. Therefore, only the second statement is accurate.

In a scenario where there is no default risk and no early redemption (call) risk, the yield to maturity represents the total return an investor expects to receive if the bond is held until its maturity date. Under these specific conditions, the yield to maturity is mathematically equivalent to the expected return, as all cash flows are guaranteed by the issuer.

A 'super poison put' is a protective covenant included in bond indentures. It allows bondholders to redeem their bonds at a premium if specific events occur, such as a hostile takeover or a significant change in the company's credit rating. This mechanism protects investors against event risk, thereby allowing the issuer to potentially lower the coupon rate and manage the cost of debt more effectively.

A debenture is a long-term debt instrument used by companies to borrow money at a fixed rate of interest. It acts as a formal certificate or document acknowledging the company's indebtedness to the holder, typically secured by a charge on the company's assets.

The premium payable on the redemption of debentures is a liability that the company is obligated to pay at a future date. Since debentures are typically long-term debt instruments, the premium associated with their redemption is classified as a long-term provision or a long-term liability on the balance sheet until the redemption occurs.

Unsecured debentures, often referred to as simple or naked debentures, are debt instruments not backed by any specific collateral or charge on the company's assets. Because they lack security, they carry a higher risk for the investor compared to secured debentures. Consequently, these instruments rely entirely on the creditworthiness and financial reputation of the issuing company to guarantee the payment of interest and the eventual repayment of the principal amount.

Issuing debentures at a discount and redeeming them at a premium creates a dual financial burden. The company receives less than the face value initially and must pay back more than the face value at maturity, significantly increasing the effective interest cost and the total cash outflow for the firm.

The total rate of return on a bond or stock investment is the sum of the income yield (such as interest or dividends) and the capital gain yield (the appreciation in the asset's price). This comprehensive measure accounts for both the periodic cash flows received by the investor and the change in the asset's market value over the holding period.

A debenture is a formal debt instrument used by corporations to borrow money from the public or financial institutions. It represents a long-term liability for the issuing company, which is obligated to pay a fixed rate of interest to the debenture holders regardless of the company's profit performance, unlike equity shareholders who receive dividends.