A bond indenture indicates:
A)the amounts and dates of all payments to be made.
B)the individual to whom payments will be made.
C)the yield to maturity of the bond.
D)the price of the bond.
E)the bond premium.

Question

Quizplus · Accepted Answer

A bond indenture is a legal contract that outlines the terms and conditions of a bond issue, including the amounts and dates of all payments to be made to bondholders. This includes the interest rate or coupon payments and the principal repayment at maturity. It may also include other provisions such as call provisions, redemption terms, and covenants. The indenture provides important information for investors to assess the risk and return of the bond investment.

A Bond Indenture Indicates