Q280
In financial markets, bond indenture results in
A.
lower federal rate
B.
higher federal rate
C.
higher risk
D.
lower risk
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In financial markets, bond indenture results in lower risk. A bond indenture is the contract associated with a bond. The terms of a bond indenture include a description of the bond features, restrictions placed on the issuer, and the actions that will be triggered if the issuer fails to make timely payments.