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Bond Indenture

Bond indenture means legal agreement for issuing the bond. This agreement is done between bondholder  and company who issues the bond. This is also called trust indenture. This bond indenture is based on different terms. Following may be the terms.

1. When will the bond mature. Bond is just like loan taken by company from investor. Maturity is the date when company repay your loan. This will be written in bond indenture.

2. What will be the interest rate on the bond? This rate will be written in the bond and it will be paid by company  to the buyer at the end of year.

3. In the bond indenture, it should be written whether bond are convertible or not.

4. Terms relating to collateral assets as security of bonds.

Related : Bond Vs Stock 

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Accounting Education: Bond Indenture
Bond Indenture
Accounting Education
https://www.svtuition.org/2012/05/bond-indenture.html
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