Choose the best answer:
The terms of a bond issue are spelled out in the bond:
a)offering memorandum.
b) indenture.
C) contract.
Option a, Offering memorandum gives details of the objectives, risks and terms of an investment dealing with private placement.
Option b, indenture is a legal agreement between the bond issuer and the bondholders. It gives details of a bond such as maturity date, payment dates, interest rates, covenants etc.
Option c, contract is a legally enforceable agreement between two or more parties.
Hence, the answer is option b.
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