What is a Debt Instrument



Posted on 01-05-2016        By leena



What is a Debt Instrument ?
Debt instrument represents a contract whereby one party lends money to 
another on pre-determined terms with regards to rate and periodicity of
interest, repayment of principal amount by the borrower to the lender.
In the Indian securities markets, the term ‘bond’ is used for debt
instruments issued by the Central and State governments and public sector 
organizations and the term ‘debenture’ is used for instruments issued by 
private corporate sector.


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