Question

The legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond ______. This document describes the number of bonds authorized, their par value, and the contract interest rate. Multiple choice question. indenture article document agreement

Answer 1

indenture

Step-by-step explanation:

a bond indenture is a legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company

a bond indenture would contain the following :

1. The purpose why the bond was issued
2. The stated interest rate of the bond
3. The dates when interests would be paid to bondholders
4. A list of covenants the issuer is subjected to in the period the bond is outstanding
5. Actions that would be taken in event of non payment of interest and or principal