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What is a bond indenture? What provisions are usually included in it?
Solution
A bond indenture is a legal contract between the issuing company and the bond holders that
identifies the obligations and rights of both parties.
It specifies such items as the par value of the bonds, the contract interest rate, the due dates of
interest payments, and the maturity date of the bonds.
It also may name a trustee, describe the bond issue in detail, and provide for a sinking fund.

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