ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!

    Question

    ┬а 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

    Practice Next
    More Alternate Sources of Finance Questions

    Relevant for Exams:

    ask-question