The number of covenants related to issued bonds are included in ___________?
Correct answer: B. bond indenture
- A. private indenture
- B. bond indenture
- C. long term indenture
- D. federal indenture
Explanation
A bond indenture is the legal agreement that states the bond's terms and includes covenants governing the issuer's conduct. A private or federal indenture is not the standard name for this document.
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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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