What is the term for a formal legal agreement between a bond issuer and bondholders detailing coupon terms, maturity, and covenants?
ATerm Sheet
BDebenture
CBond Indenture
DProspectus
Explanation
* Bond Indenture is the legal contract specifying terms, coupon rate, payment frequency, maturity date, call provisions, and protective covenants.
* Trustee monitors compliance on behalf of bondholders.
Exam Relevance
- Topic: Financial Markets
- Subtopic: Fixed Income Securities

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