In terms of public offerings of bonds, what is an indenture?

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Quizplus · Accepted Answer

An indenture is a legal and binding contract between a corporation or government entity issuing bonds and the bondholders. It outlines the terms and conditions of the bond issue, including the maturity date, interest rate, repayment schedule, collateral, and any restrictive covenants or investor protections in place. The indenture is drafted by the issuer and reviewed and approved by a trustee or other fiduciary appointed to represent the interests of the bondholders.

In Terms of Public Offerings of Bonds, What Is an Indenture