Consider the following statements:

  1. Debentures are generally not backed by any collaterals
  2. Non-Convertible Debentures generally carry higher rates of returns that convertible debentures

Which among the above statements is / are correct?

[A] Only 1 is correct
[B] Only 2 is correct
[C] Both 1 & 2 are correct
[D] Neither 1 nor 2 is correct

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