Chapter 14, Problem 5DQ

To determine

Concept introduction:

Bonds:

Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date.

Bond Trustee:

Bond Trustee is a mediator between the issuer and the binds and the lender. The issuer company gives rights to the bond trustee to ensure the provision of bond indentures. The bond trustee also protects the rights of the lenders.

To indicate: The duties of a trustee for bondholders