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Explain how the principle of fiduciary duty works in a partnership relationship.
Bankruptcy
A legal process wherein individuals or entities declare their inability to pay back their debts.
Sinking Fund
A fund established by a borrower, setting aside revenue over time to repay a debt or replace a depreciating asset in the future.
Call Provisions
Terms in a bond contract that allow the issuer to repurchase and retire the bond at a specified price before maturity, protecting against interest rate risk.
Bond Indenture
A legal contract between a bond issuer and a bondholder, detailing the terms of the bond such as the coupon rate, maturity date, and obligations of the issuer.
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