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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
Submitted by: mcqstutor Team More Finance & Accounting MCQs →

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