Series 7 Exam Question 265: Answer and Explanation

Question: 265

Which of the following items are found on an indenture of a bond?

I. The maturity date

II. Callable or convertible features

III. The coupon rate

IV. The name of the trustee

  • A. II, III, and IV
  • B. I, II, and III
  • C. II and III
  • D. I, II, III, and IV

Correct Answer: D

Explanation:

D. The bond indenture (deed of trust) is the legal agreement between the issuer and investors. The bond indenture includes the maturity date, the par value, the coupon rate, any collateral securing the bond, any callable or convertible features, and the name of the trustee.

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