Bond indenture

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Legal contract that describes the structure of a bond, the obligations of the issuer, and the rights of the bondholders.

The indenture states the basic features of the bond issue:

  • Issuer
  • Maturity date
  • Face value
  • Coupon rate
  • Currency
  • Funding sources for the interest payments and principal repayments
  • Any collaterals, credit enhancements, covenants