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Q: What is a bond indenture What provisions are usually included in it?
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What is the legal contract setting forth the terms and provisions of a corporate bond called?

indenture


Difference between bond agreement and bond indenture?

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.


Is a bond indenture is a bond with no specific collateral securing it?

Yes


What is a provision on a bond which provides for the systematic retirement of the bond prior to their maturity?

A provision on a bond that provides for the systematic retirement of the bond prior to maturity is known as a sinking fund provision. This provision requires the issuer to set aside funds on a regular basis to repay a portion of the bond issue before it matures, reducing the overall debt burden.


What is a legal document that outlines all of the conditions of the bond?

A bond indenture.


The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the?

bond indenture


What is the contract to purchase bonds called?

The contract for a purchase of bonds is called a bond indenture, which provides a description of the bond issue as well as the rights of both the buyer and seller.


What are the two types of indent agents?

The two types of indent agents are indentures who act as middlemen to connect buyers and sellers in financial markets, and indenture trustees who are responsible for enforcing the terms of a bond indenture on behalf of bondholders.


What is restrictive covenants in the company's bond indenture?

When taking out a corporate bond, there is risk involved as companies can default on their bond repayments. Investors are aware of this risk and so when the bond is drawn up (bond indenture) the contract normally includes a number of restrictive covenants that prevent the company from defaulting purposely or increasing its option to default on purpose. Possible convenants may include: the company having to maintain its working capital above a certain level i.e level of debt to assets. cant sell its assets without approval a promise to provide certain financial statements to the lenders etc


What does debenture mean?

A debenture is an unsecured bond that's issued either by a governmental or civil corporation and backed only by the credit standing or integrity of the issuer, not collateral. It is documented by an indenture, which is an agreement.


Corporate bond interest included in this years GDP?

No


What conditions would cause forfeiture of a bond?

Bond is an amount set by the court, in either cash or property, that is posted to ensure the arrestee/defendants appearance for court actions. Use of the word "FORFEITURE" implies that the court seized (i.e.- forfeited) the bond due to the fugitive's failing to abide by the provisions of their release on bond - usually fleeing the jurisdiction and becoming a fugitive, or by committing another crime and eluding capture.