A document or agreement giving the terms of the bond and the rights and duties of the borrower and other parties to the contract that provides some protection to the bondholders and typically limits the borrower's right to declare dividends, to make other distributions to owners, and to acquire other businesses is known as a
A)bond sinking fund agreement.
B)serial bond funding agreement.
C)bond indenture.
D)creditor indenture.
E)business trust indenture.

Question

Quizplus · Accepted Answer

A bond indenture is a legal document that outlines the terms and conditions of a bond. It includes information about the bond's interest rate, maturity date, payment schedule, and other features. It also outlines the rights and responsibilities of the borrower and the bondholders. The bond indenture typically restricts the borrower from taking certain actions, such as paying dividends or acquiring other companies, in order to protect the bondholders.

A Document or Agreement Giving the Terms of the Bond