As it relates to the bond indenture, the corporate trustee acts in a fiduciary capacity for:
I. bond investors
II. bond issuers
III. bond underwriters
IV. regulators
A. I only
B. II only
C. I and IV
D. II and III
Answer:A
The promises of corporate bond issuers and the rights of investors who buy them are set forth in great detail in contracts generally called indentures. The indenture is made out to the corporate trustee as a representative of the interests of bondholders; that is, the trustee acts in a fiduciary capacity for investors who own the bond issue.