A. lower federal rate
B. higher federal rate
C. higher risk
D. lower risk
✅ The correct answer is option D.
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.
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.