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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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When are payments into a sinking fund made?
Payments into a sinking fund are typically made at regular intervals, such as annually, semi-annually, or quarterly, depending on the terms of the bond or debt agreement. These payments are designed to accumulate enough funds to repay the principal amount of the debt when it matures. The schedule and amount of these payments are predetermined and specified in the bond indenture or debt contract.
What is the difference between a bond bid and ask price?
The bond bid price is the highest price a buyer is willing to pay for a bond, while the bond ask price is the lowest price a seller is willing to accept for the bond. The difference between the bid and ask price is known as the bid-ask spread.
What is the difference between a letter of credit and a supercedeas bond?
is a letter of credit considered the same as a supercedeas bond?
What is the difference between an unsecured bond and a secured bond?
An unsecured bond is not backed by collateral, while a secured bond is backed by specific assets that can be claimed by the bondholder if the issuer defaults.
When is a bond par value generally repaid?
A bond is a type of a debt security, the approved issuer owes the holders a debt. The repayment period is often an agreement between the issuer and the holder.
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 a legal document that outlines all of the conditions of the bond?
A bond indenture.
What is a bond indenture What provisions are usually included in it?
A bond indenture is a legal document outlining the terms and conditions of a bond issuance. Provisions typically included in a bond indenture cover details such as payment terms, interest rates, maturity dates, covenants, collateral, and potential remedies for the bondholders if the issuer defaults.
Is a bond indenture is a bond with no specific collateral securing it?
No, a bond indenture is a legal document that outlines the terms and conditions of a bond issue, including the rights and responsibilities of the issuer and bondholders. A bond with no specific collateral securing it is typically referred to as an unsecured bond or debenture.
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.
What word is the same as contract?
Here are some synonyms(words that mean the same but are spelled differently: agreement bond indenture pact convention deal treaty catch yours truly,,, dfam23
What three words mean the same as covenant?
contract, agreement, undertaking, commitment, guarantee, warrant, pledge, promise, bond, indenture, pact, deal, settlement, arrangement, understanding. Pick three.
The Bond Of 1844?
The bond of 1844 was the peace agreement between the British and the Fante chiefs
What is the legal contract setting forth the terms and provisions of a corporate bond called?
indenture
How can the type of bond be predicted?
Ionic bond: the difference between electronegativities of the atoms is over 2.Covalent polar bond: the difference between electronegativities of the atoms is under 2.Covalent non-polar bond: the difference between electronegativities of the atoms is cca. zero
What is the contract to purchase bonds called?
The contract to purchase bonds is typically called a bond purchase agreement. It outlines the terms and conditions of the bond sale, including the price, quantity, and maturity date of the bonds being purchased.
What determines the type of bond that forms between atoms or compounds?
The type of bond that forms between atoms or compounds is determined by the electronegativity difference between the atoms involved in the bond. If the electronegativity difference is small, a covalent bond forms, where electrons are shared. If the electronegativity difference is large, an ionic bond forms, where electrons are transferred.
