Question: Indenture Contract Feature The indenture contract is a critical document in the realm of corporate bonds, outlining the rights and responsibilities of both the issuer

Indenture Contract Feature The indenture contract is a critical document in the realm of corporate bonds, outlining the rights and responsibilities of both the issuer (borrower) and the bondholders (lenders). An indenture is a formal legal agreement between the bond issuer and the bondholders. It specifies all essential terms related to the bond issue. The indenture clearly outlines the obligations of the borrower (issuer) regarding interest payments, principal repayment, and any actions they must take to protect the interests of the bondholders. Corporate bond contain covenants which are specific clauses in the indenture that impose certain requirements or restrictions on the issuer

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