Asked by Jonathan Philley on May 21, 2024
Verified
The legal contract between issuer and bondholder
A) EPS
B) Face value
C) Callable bond
D) Indenture
E) Term bond
F) Convertible bond
G) Serial bond
Legal Contract
A binding agreement between two or more parties, enforceable by law, that specifies and regulates the rights and duties of the parties involved.
Bondholder
An investor or owner of bonds issued by corporations or governments, entitled to receive interest payments and the principal amount at maturity.
- Acquire understanding of fundamental bond terminology including face value, contract rate, effective rate, and bond indenture.
Verified Answer
BJ
Brennen JonesMay 24, 2024
Final Answer :
D
Explanation :
The legal contract between the issuer and bondholder is called an indenture.
Learning Objectives
- Acquire understanding of fundamental bond terminology including face value, contract rate, effective rate, and bond indenture.