Asked by Caden DeValle on May 26, 2024
Verified
Which of the following statements concerning bonds is not a true statement?
A) Bonds are generally sold through an investment company.
B) The bond indenture is prepared after the bonds are printed.
C) The bond indenture and bond certificate are separate documents.
D) The trustee keeps records of each bondholder.
Bond Indenture
A legal contract between a bond issuer and bondholders, detailing the terms of the bond such as the interest rate, maturity date, and obligations of both parties.
Investment Company
A corporation or trust engaged in the business of investing the pooled capital of investors in financial securities.
Bond Certificate
A legal document that indicates the name of the issuer, the face value of the bonds, the contractual interest rate, and maturity date of the bonds.
- Acquire knowledge about the legal and contractual features of bonds, including what is entailed in the role and material of a bond indenture.
Verified Answer
Learning Objectives
- Acquire knowledge about the legal and contractual features of bonds, including what is entailed in the role and material of a bond indenture.
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