A contract representing the covenants and other terms of the agreement between the issuer of bonds and the lender is known as a
A) bond debenture.
B) long-term note payable.
C) registered bond.
D) bond indenture.

Question

Quizplus · Accepted Answer

A bond indenture is a legal document containing the terms and conditions of a bond issuance, including the rights and responsibilities of both the issuer and the bondholders. It establishes the interest rate, maturity date, redemption provisions, and other key terms of the bond offering. Bond debenture, long-term note payable, and registered bond are other types of debt instruments, but they do not specifically refer to the contract between the issuer and the lender.

A Contract Representing the Covenants and Other Terms of the Agreement