Bond Indenture

A bond indenture is a legal contract between the issuer of a bond (such as a company or government) and the bondholders. It outlines the key terms of the bond, including the interest rate, repayment schedule, maturity date, and other obligations or protections for investors. The indenture also designates a trustee who ensures the issuer complies with these terms. Essentially, it’s the detailed agreement that formalizes the relationship and responsibilities between the issuer and the investors, providing clarity and security for both parties throughout the life of the bond.