The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the registered bond. bond debenture. bond indenture. bond coupon.

Question

Averi Webb

Business

13 October, 07:51

The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the registered bond. bond debenture. bond indenture. bond coupon.

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Answers (1)

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Nikolai Ochoa · Answer 1

The correct answer is Bond indenture.

Explanation:

The bond indenture is a contract through which a person called a guarantor is obliged to respond for the obligation of the principal debtor, it is an accessory obligation under which one or more persons respond to an obligation of another, committing to the creditor to comply with it in whole or in part, if the principal debtor does not comply.

The bond is held for the purpose of guaranteeing a third party obligation, but in which the creditor can only charge the guarantor when the principal debtor of the obligation does not comply.