An indenture is a contract between the firm that issues the long-term debt securities and the lenders.

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An indenture is a legal and binding contract that outlines the terms and conditions of a bond or other long-term debt security. It is entered into between the issuer of the securities (usually a corporation or government entity) and the lenders or bondholders who purchase the securities. The indenture typically covers important details such as the interest rate, maturity date, repayment terms, and other covenants or restrictions that apply to the loan.

An Indenture Is a Contract Between the Firm That Issues