- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 1. Fixed-Income Instrument Features
- Subject 2. Bond Indenture
CFA Practice Question
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
Correct Answer: C
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. |