The department who is appointed by the bond holders as the representative or monitor of bonds is considered as _________?
Correct answer: A. trustee
- A. trustee
- B. trust department
- C. monitoring department
- D. indenture department
Explanation
A bond trustee represents and protects bondholders by monitoring the issuer’s compliance with the bond indenture and taking action in case of default. A trust department may perform this role institutionally, but the appointed representative is the trustee.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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