Debt Instrument (Noun)
Meaning
A written promise to repay a debt.
Classification
Nouns denoting possession and transfer of possession.
Examples
- A bond is a type of debt instrument that represents a loan made by an investor to a borrower.
- The company issued a debt instrument to raise capital for its new project.
- A promissory note is a debt instrument that contains a written promise to repay a debt.
- The investor purchased a debt instrument from the company, which promised to repay the loan with interest.
- A mortgage is a debt instrument that is secured by a property, such as a house or building.