Debt Instrument Definition
A debt instrument is a financial instrument that represents a borrowing between two parties. The party who borrows the money is known as the issuer, and the party who lends the money is known as the investor. The terms of the loan are typically outlined in a contract, which can include the interest rate, maturity date, and repayment schedule.
Debt instruments can take many different forms, including bonds, notes, and loans. They can be issued by corporations, governments, or other entities to raise capital for a variety of purposes.
