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What is the difference between a bond agreement and a bond indenture?

  • Bond Agreement: A contract for privately placed debt.
  • Bond Indenture: A blanket agreement between a corporation and its bond holders that states the interest rate, maturity date, and other terms and conditions of the bond issue.
  • Based on these two definitions a bond agreement is more of a private agreement between the company and the bond purchaser where the bond indenture is more of a legal agreement. Bond agreement could get complicated if it isn't a trusted person where the bond indenture appears as a contractual agreement to keep people honest.
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What is the difference between a bond agreement and a bond indenture?

  • Bond Agreement: A contract for privately placed debt.
  • Bond Indenture: A blanket agreement between a corporation and its bond holders that states the interest rate, maturity date, and other terms and conditions of the bond issue.
  • Based on these two definitions a bond agreement is more of a private agreement between the company and the bond purchaser where the bond indenture is more of a legal agreement. Bond agreement could get complicated if it isn't a trusted person where the bond indenture appears as a contractual agreement to keep people honest.
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Yes

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A bond indenture.

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indenture

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bond indenture

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