Answer: The trustee has the authority to declare a default if the issuer misses a payment.

## Explanation In corporate bond indentures, the trustee plays a crucial role in protecting bondholders' interests. Let's analyze each option: **Option A: CORRECT** - The trustee does have the authority to declare a default if the issuer misses a payment. This is one of the primary responsibilities of the trustee outlined in the indenture agreement. **Option B: INCORRECT** - The trustee cannot take action beyond what is specified in the indenture. Their powers and responsibilities are strictly limited to the terms of the indenture agreement. **Option C: INCORRECT** - While bondholders can request action from the trustee, the trustee is not required to act solely at their request. The trustee has independent duties and responsibilities defined in the indenture. **Option D: INCORRECT** - The trustee is typically paid by the issuer, not by the bondholders. This payment arrangement is established in the indenture agreement. ### Key Points: - The trustee acts as a fiduciary for bondholders - Their powers are limited to those specified in the indenture - They monitor the issuer's compliance with indenture terms - They have the authority to declare defaults and take appropriate action as specified in the agreement

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