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6 May, 2015 - 17:10

Each time a corporation issues a bond, a contract, known as the bond or trust indenture, is executed. The principal or face value of the bond, when interest payments are due and the interest rate are stated in the bond indenture. Bonds differ by the following characteristics: transferability of ownership, issuance and maturity dates, conversion provisions, redemption rights, and whether they are secured or not.