A bond indenture is the contract detailing the terms of a bond. At a minimum, the...
A bond indenture is the contract detailing the terms of a bond. At a minimum, the typical bond indenture includes: A. the par value which is the semi-annual interest payment B. when the bond will be called C. the maturity or length of the bond’s life D. when the bond will be converted
Homework Answers
The correct answer is option C. the maturity or length of the bond's life
At a minimum, the typical bond indenture includes the maturity or the length of the bond's life
Option A is incorrect because the par value is quite common and it is not equal to the interest payment. The typical par value of any bond is $1,000
Option B is incorrect because the callable feature is a special feature of the bond and not all bonds have this feature.
Option D is incorrect because the convertible feature is a special feature of the bond and not all bonds have this feature.
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