What is the difference between a bond indenture and a bond certificate?
Thereof, what is the difference between a bond agreement and a bond indenture?
In simplest terms, a bond indenture is the contract between the bond issuer and an investor. The contract outlines the terms of the bond, the promise of the issuer and your rights as an investor. A prospectus is a formal and legal document that presents details about the structure and goals of the issuing bond company.
Similarly, what is a bond indenture what provisions are usually included in it? A bond indenture is the contract between the bond's issuer and the bondholder. The face value of the bond, the interest rate, the interest payment dates, and the maturity date will most likely be. recorded on the bond indenture.
In this way, what is a bond indenture?
A bond indenture is the contract associated with a bond. The terms of a bond indenture include a description of the bond features, restrictions placed on the issuer, and the actions that will be triggered if the issuer fails to make timely payments. The dates when interest payments will be made to bondholders.
What is the function of a trustee as related to the bond indenture?
A bond trustee is hired by a bond issuer and oversees the implementation of a bond or trust indenture, which is a contract between a bond issuer and a bondholder. The trustee has a fiduciary responsibility to act on behalf of the issuer, rather than in its own interests.