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Basic Question 5 of 9
Responsibilities of a corporate trustee with regard to a bond's trust indenture do not include ______.
B. authenticating the bonds issued
C. negotiating the terms
D. declaring defaults
A. checking compliance
B. authenticating the bonds issued
C. negotiating the terms
D. declaring defaults
User Contributed Comments 4
| User | Comment |
|---|---|
| boesawolf | The trustee represents the interests of bondholders, he does not form them |
| Rubbish | so a trustee polices the covenants? |
| Rchan89 | what's authenticating the bonds issued mean? |
| bidisha | i took it literally. So they have to approve the bonds are authentic when the bonds are issued. |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
describe the contents of a bond indenture and contrast affirmative and negative covenants
CFA® 2025 Level I Curriculum, Volume 4, Module 1.