Question: What is the difference between a bond indenture and a bond certificate? The bond indenture is written by the issuing company, whereas the bond certificate
What is the difference between a bond indenture and a bond certificate?
The bond indenture is written by the issuing company, whereas the bond certificate is written by the purchaser of the bond.
The bond indenture is a legal document that defines the terms of the bond issue including the rights of bondholders; the bond certificate provides details about the bond being issued including the financial elements of the bond.
The bond certificate is a legal document that defines the terms of the bond issue including the rifunts of bondholders; the bond indenture provides details about the bond being issued including the financial elements of the bond.
The bond certificate cannot be printed until the bond is issued, and the selling price and market rate are known.
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