When a company prepares a bond indenture, certain provisions of the bonds are included. Which of the following are not provisions speciﬁed in the indenture?
A) Dates of interest payments.
B) Rate of interest to be paid.
C) Cash to be received at the issue date.
D) Maturity date.

Question

Quizplus · Accepted Answer

The cash to be received at the issue date is determined by the market and is not a provision specified in the bond indenture. The indenture typically includes terms like interest payment dates, interest rates, and maturity dates, but not the issue price or cash received at issuance.

When a Company Prepares a Bond Indenture, Certain Provisions of the Bonds