Asked by
vidhya swami
on Oct 15, 2024Verified
The contract between the bond issuer and the bondholders identifying the rights and obligations of the parties,is called a(n) :
A) Debenture.
B) Bond indenture.
C) Mortgage.
D) Installment note.
E) Mortgage contract.
Bond Indenture
A legal contract between a bond issuer and a bondholder specifying the terms of the bond, such as the interest rate, repayment schedule, and other conditions.
Bond Issuer
An entity, such as a corporation or government, that raises funds by issuing bonds, obligating itself to pay interest to bondholders and repay the principal at maturity.
Obligations
Legal or financial duties or commitments that an entity is required to fulfill.
- Recognize the rights and obligations associated with bonds, including bond indentures and collateral agreements.
Verified Answer
VT
Learning Objectives
- Recognize the rights and obligations associated with bonds, including bond indentures and collateral agreements.