Which of the Following Possible Provisions of a Bond Indenture

question 3

Multiple Choice

Which of the following possible provisions of a bond indenture is designed to ease the burden of principal repayment by spreading it out over several years?

• A) callable feature
• B) convertible feature
• C) subordination clause
• D) sinking fund

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Definitions:

Paid-in Capital

The amount of money that a company receives from its shareholders in exchange for shares of stock.

Declaration Date

The date on which a company's board of directors announces its intention to pay a dividend.

Incorporation Date

The date on which a company was legally registered or incorporated and started its existence as a corporate entity.

Record Date

Record date is the specific date set by a company on which one must be on the company's books as a shareholder to receive a declared dividend or participate in corporate actions.