In financial markets, bond indenture results in

A. lower federal rate

B. higher federal rate

C. higher risk

D. lower risk

Answer: Option D

Solution(By Examveda Team)

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.