The legal contract that describes the form of the bond, the obligations of the issuer, and the rights of the bondholders can be best described as a bond's:
A) covenant.
B) indenture.
C) debenture.

Question

Quizplus · Accepted Answer

The legal contract that describes the form of the bond, the obligations of the issuer, and the rights of the bondholders is called an indenture. A debenture refers to an unsecured bond, meaning it is not backed by collateral, and a covenant refers to a promise or agreement made in the bond contract.

The Legal Contract That Describes the Form of the Bond