Which of the following provisions of a bond indenture is
designed to ease the burden of principal repayment by spreading it
out over several years?
a. pay in kind feature
b. sinking fund
c. convertible feature
d. callable feature
True or False
9.An indenture is a bond that is backed by good faith of the
company.
10.Default risk is the risk that a company can't make its'
interest payments.
11.Subordinated debentures are higher order claimants (i.e. paid
out earlier) compared to mortgage bond holders when there is a
bankruptcy.
12. A put provision gives the investor the right but not the
obligation to sell the bond back to the company.
14. The debenture statement is the legal document that...
If included within the bond's indenture, which of the following
is an option that can be exercised by the bond issuer?
a.
convertible
b.
callable
c.
putable
d.
sinking fund