Asked by Michelle Chrisette on Apr 25, 2024
The written, legally binding agreement between the corporate borrower and the lender detailing the terms of a bond issue is called the:
A) Indenture.
B) Covenant.
C) Terms of trade.
D) Form 5140.
E) Call provision.
Legally Binding
An agreement or contract that is enforceable by law.
Bond Indenture
A legal document detailing the terms and conditions of a bond issue, including the obligations of the issuer and the rights of the bondholders.
- Acquire knowledge about the diverse categories of bond covenants and what they entail for businesses and investors.
- Identify the distinguishing features and intended outcomes of various bond provisions, such as put provisions, call provisions, and protective covenants.
Learning Objectives
- Acquire knowledge about the diverse categories of bond covenants and what they entail for businesses and investors.
- Identify the distinguishing features and intended outcomes of various bond provisions, such as put provisions, call provisions, and protective covenants.