What is a debt instrument?
Wednesday, July 26, 2017, 12:39 PM
A debt instrument is a paper or electronic legal obligation that enables the issuer to raise funds by promising to repay a lender the borrowed sum along with interest on a timely basis. It allows the lender to earn a fixed interest on it besides getting the principal back. Types of debt instruments include bonds, debentures, leases, certificates, bills of exchange, promissory notes etc.