Asked by
casey mcgeehan
on Nov 13, 2024Verified
A bond indenture is
A) a contract between the corporation issuing the bonds and the underwriters selling the bonds
B) the amount due at the maturity date of the bonds
C) a contract between the corporation issuing the bonds and the bondholders
D) the amount for which the corporation can buy back the bonds prior to the maturity date
Bond Indenture
A legal document specifying the terms, conditions, and details of a bond issued by a corporation or government entity.
Corporation Issuing
The process by which a corporation releases or sells securities, like stocks or bonds, to raise capital.
Bondholders
Individuals or entities that hold debt securities issued by corporations or governments, entitling them to receive interest and the repayment of principal.
- Describe the purpose and components of a bond indenture.
Verified Answer
TV
Learning Objectives
- Describe the purpose and components of a bond indenture.