When a company prepares a bond indenture,certain provisions of the bonds are included.Which of the following are not provisions specified in the indenture?
A)Dates of interest payments.
B)Rate of interest to be paid.
C)Cash to be received at the issue date.
D)Maturity date.

Question

Quizplus · Accepted Answer

The cash to be received at the issue date is not a provision specified in the indenture. While it is a critical aspect of the bond issuance, it is usually mentioned in the offering circular or prospectus rather than the indenture itself. The indenture focuses more on the legal and contractual terms of the bond, such as the dates and rates of interest payments and the maturity date.

When a Company Prepares a Bond Indenture,certain Provisions of the Bonds