All of the following items would need to be included in the bond's indenture agreement EXCEPT
A) the coupon rate.
B) the call feature.
C) the credit rating.
D) steps that the bondholder can take in the event that the issuer fails to pay the interest or principal.

Question

Quizplus · Accepted Answer

The credit rating is not included in the bond's indenture agreement because it is determined by independent credit rating agencies and can change over time based on the issuer's financial condition. The indenture includes terms like the coupon rate, call features, and steps for recourse if the issuer defaults, but not the credit rating.

All of the Following Items Would Need to Be Included