Question

The legal contract that describes the form of the bond, the obligations of the issuer, and the rights of the bondholders can be best described as a bond's:

a) Coupon rate
b) Maturity date
c) Indenture
d) Credit rating

Answer 1

The legal contract that describes the form of the bond, the obligations of the issuer, and the rights of the bondholders is known as a bond's indenture.

Step-by-step explanation:

The legal contract that describes the form of the bond, the obligations of the issuer, and the rights of the bondholders is best described as a bond's indenture.

The indenture serves as a legal agreement between the issuer of the bond (such as a corporation or government) and the bondholders, outlining the terms and conditions of the bond.