What is bond indenture? List some items included in an indenture.

Question

Question

Answer 1

Answer #1

A bond indenture is a contract that specifies the characteristics of a bond.

Some of the items included in an indenture are:

Bond features such as the interest rates, interest payment dates, maturity date
The course of action when the bond issuer fails to make the interest payment on time
A restriction on the bond issuer to take some actions such as issuing additional bonds
Other special features such as conversion features

Answer 2

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