The predetermined interest rate paid to the lender, either fixed for the life of the instrument or floating based on a benchmark.
Long-term debt instruments issued by companies, often secured by the company's general assets rather than specific collateral. debt instrument
A is a contractual agreement representing borrowed funds that one party (the borrower or issuer) is legally obligated to repay to another party (the lender or investor). These instruments are used by governments, municipalities, and corporations to raise capital for projects, infrastructure, or operational expenses. Unlike equity, debt does not grant ownership but provides a fixed or variable income stream to the investor. 2. Key Features of Debt Instruments The predetermined interest rate paid to the lender,