Bond indenture
The terms of the bond issue are set forth in a legal document called a bond indenture. The indenture shows the terms and summarizes the rights of the bond holders and their trustees, and the obligations of the issuing company. The trustee (usually a financial institution) keeps records of each bondholder, maintains custody of issued bonds, and holds conditional title to pledged property.
Bond indenture is a blanket agreement between the corporation and its bondholders that states the bond issue’s interest rate, maturity date, and other terms and conditions.
Category: Accounting & Auditing
Previous: ← Contractual interest rate
Next: Present value →
More from this Section
- Inventory Systems
A merchandising company keeps track of its inventory to determine what is available for ... - Direct labor quantity standard
The direct labor quantity standard is the time that should be required to make one unit ... - Long Put
Long Put refers to the trader's purchase of a put option with the intention of selling ... - Meaning of verification
Meaning of verification is ‘proving the truth’, or ‘confirmation’. An auditor ... - Broad Form Insurance
Broad Form Insurance is a type of insurance that goes further than the essentials to encompass ...