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Bond Indenture
An indenture builds the formal conditions of a lending relationship between a borrower and a lender. It is a written record, and it outlines most important function area such as the principal, the rate of interest, the development rate, and other limitations that the borrower agrees to abide by.
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Bonds pay interest periodically at a pre-specified rate of interest. The annual rate at which this interest is paid is known as the coupon rate or simply the coup
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State the term- adequate working capital If a firm doesn't have adequate working capital, that is, it doesn't invest sufficient funds in current assets, it can become illiquid
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