When a company prepares a bond indenture, certain provisions of the bonds are included. Which of the following are not provisions specified in the indenture?
A) Rate of interest to be paid.
B) Maturity date.
C) Cash to be received at the issue date.
D) Dates of interest payments.

Question

Quizplus · Accepted Answer

The cash to be received at the issue date is not a provision specified in the indenture. It is determined by the market demand for the bond and the underwriting process. The rate of interest to be paid, maturity date, and dates of interest payments are all provisions included in the bond indenture.

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