The indenture is a contract between the issuer and lenders that does all the following except:
A)specifies the manner in which the principal must be repaid
B)details the nature of the debt issue
C)gives management's expectations about return of the proceeds
D)lists any restrictive covenants

Question

Quizplus · Accepted Answer

The indenture does not give management's expectations about the return of the proceeds. It is a legal document that outlines the terms and conditions of the debt issue and specifies how the principal must be repaid. Additionally, it includes details about any restrictive covenants that lenders must follow.

The Indenture Is a Contract Between the Issuer and Lenders