Asked by Fritcy Chavez on May 17, 2024
Verified
An indenture is a debt agreement.
Indenture
A formal legal agreement, contract, or document, especially one regarding debt or bonds, specifying terms and conditions.
Debt Agreement
A formal arrangement between a debtor and creditors which outlines the terms of debt repayment.
- Understand the distinctions between debentures and indentures, along with their importance.
Verified Answer
SN
Sandeep NagreMay 22, 2024
Final Answer :
True
Explanation :
An indenture is a legal and binding contract between bond issuers and bondholders, specifying the key terms of the bond, such as its maturity date, timing of interest payments, and the interest rate.
Learning Objectives
- Understand the distinctions between debentures and indentures, along with their importance.