Debt instrument are fixed income securities like bonds and debentures. Bond and debentures are issued by public and private sectors undertakings. A bond or debentures is a debt security issued by a borrower issue by firms with a promise to make payment of interest and principal under clearly defined terms and conditions.
Characteristics of debt securities
- Tradeable.
- Obligation to pay principal / par value.
- Tenor / term to maturity.
- Obligation to pay interest.
Periodicityof payment of interest.
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