The Legal Document Setting Forth the Obligations of a Bond's

question 5

Multiple Choice

The legal document setting forth the obligations of a bond's issuer is called

• A) a debenture.
• B) a warrant.
• C) an indenture.
• D) a rights certificate.
• E) a trustee deed.

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Definitions:

Collection Time

The duration it takes for a business to receive payments owed by its customers after a sale has been made.

Collection Float

The time delay between when a check is written and when the funds are actually deducted from the payer's account.

Treasury Bills

Short-term government securities issued at a discount from their face value and maturing at par.

Interest Rate

An Interest Rate is the percentage of principal charged by a lender for the use of its money or the rate earned on deposited funds.