Question

What sets out the conditions that a bond issuer must comply with while bonds are outstanding? Choose the correct option(s):

a) Market expectations
b) Debt reserves
c) Indenture
d) Debenture

Select the term that best describes the conditions for bond issuers.

Answer 1

The conditions that a bond issuer must comply with while bonds are outstanding are set out in the indenture. Option c.

Step-by-step explanation:

The conditions that a bond issuer must comply with while bonds are outstanding are set out in the indenture option c. An indenture is a legal document that outlines the terms and conditions of a bond issue, including the interest rate, maturity date, and payment schedule. It also includes provisions for events such as defaults or changes in ownership that may affect bondholders.