A Bond Indenture Is a Bond with No Specific Collateral

question 28

True/False

A bond indenture is a bond with no specific collateral securing it.
The "indenture" is the complete text of the loan agreement, not to be confused with "debentures" or unsecured bonds.

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Definitions:

Construction Loan

Short-term financing used to cover the cost of building or renovating a property until long-term financing can be secured.

Expense Account

A ledger account that represents all costs or expenses incurred by a company during a specific period, impacting the income statement's net income.

Acquisition Costs

Expenses associated with acquiring new assets or investments, including legal fees, consulting fees, administrative costs, and other related expenses.

Property, Plant, Equipment

Long-term tangible assets owned by a business for use in the production or supply of goods and services, also known as fixed assets.