The legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond ______. This document describes the number of bonds authorized, their par value, and the contract interest rate. Multiple choice question. indenture article document agreement
a bond indenture is a legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company
a bond indenture would contain the following :
The purpose why the bond was issued
The stated interest rate of the bond
The dates when interests would be paid to bondholders
A list of covenants the issuer is subjected to in the period the bond is outstanding
Actions that would be taken in event of non payment of interest and or principal
