Economics Bonds Questions
A bond indenture refers to a legal agreement between the issuer of a bond and the bondholders. It outlines the terms and conditions of the bond, including the principal amount, interest rate, maturity date, and any other provisions or covenants. The indenture also specifies the rights and responsibilities of both the issuer and the bondholders, such as the repayment schedule, call or redemption provisions, and any collateral or security pledged. It serves as a binding contract that governs the relationship between the issuer and the bondholders throughout the life of the bond.