Asked by Kamil Khanna on Jun 22, 2024
Verified
A legal document that indicates the name of the issuer, the face value of the bond and such other data is called
A) trading on the equity
B) convertible bond
C) a bond debenture
D) a bond indenture
Bond Indenture
A legal document detailing the terms and conditions of a bond issue, including the interest rate, maturity date, and obligations of the issuer.
Legal Document
A formal document that records agreements, contracts, or declarations and is recognized and enforceable by law.
Face Value
The nominal value printed on a financial instrument like a bond or currency note, representing its legal value.
- Explain the concept of the bond indenture and its components.
Verified Answer
ME
MANUELA ELIZABETH MIRANDA GARCIAJun 23, 2024
Final Answer :
D
Explanation :
A bond indenture is a legal document that outlines the details of a bond issue, including the name of the issuer, the face value of the bond, the coupon rate, the maturity date, and other important data. This document is usually prepared by the issuer and outlines the terms of the bond, including any restrictions or covenants that the issuer must adhere to in order to maintain compliance with the terms of the issue.
Learning Objectives
- Explain the concept of the bond indenture and its components.