An indenture is a legal and binding agreement between a corporation and a trustee acting on behalf of bondholders. The indenture outlines the terms and conditions of the bond, including interest rate, maturity date, and other provisions that govern the relationship between the bond issuer and bondholders. Therefore, the correct choice is C.

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An Indenture Is

Question 68

Multiple Choice

An indenture is

A) the section of a corporation's bylaws pertaining to bond issues.
B) the summary of the essential features of a stock issue.
C) the contract between a corporation and a trustee acting for bondholders.
D) the underwriting contract.

Correct Answer: