An indenture is the legal agreement between the bond issuer and the bondholders. This agreement outlines the terms and conditions of the bond issue, including repayment terms, interest rates, and any collateral or security that may be attached to the bond.

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An Indenture Is

Question 20

Multiple Choice

An indenture is:

A) another name for a bond's coupon.
B) the written record of all the holders of a bond issue.
C) a bond that is past its maturity date but has yet to be repaid.
D) a bond that is secured by the inventory held by the bond's issuer.
E) the legal agreement between the bond issuer and the bondholders.

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