SIE Exam Question 588: Answer and Explanation

Question: 588

Which of the following is an unconditional contract between a bond issuer and a bondholder that specifies the terms of the bond?

• A. Debenture
• B. Indenture
• C. Prospectus
• D. Tombstone ad

Correct Answer: B

Explanation:

An indenture is an unconditional contract between a bond issuer and a bondholder that specifies the terms of the bond.