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      Question

        Any legal contract or agreement between a borrower

      and lender that defines the rights and obligations of the parties in relation to a bond issue is called:
      A debenture Correct Answer Incorrect Answer
      B indenture Correct Answer Incorrect Answer
      C covenant Correct Answer Incorrect Answer
      D formal agreement Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Any legal contract or agreement between a borrower and lender that defines the rights and obligations of the parties in relation to a bond issue is called indenture. Any restrictions or conditions mentioned in the agreement are called covenants

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