When a company prepares a bond indenture, certain provisions of the bonds are included. Which of the following is/are not specified in the indenture?
A) Dates of each interest payment.
B) The stated interest rate.
C)The maturity date.
D)The market rate of interest.

Question

Quizplus · Accepted Answer

The market rate of interest is not specified in the bond indenture as it is determined by market forces at the time of issuance. The other options (A, B, and C) are typically included in the indenture as they are important provisions for the bondholders.

When a Company Prepares a Bond Indenture, Certain Provisions of the Bonds