Debt | Instrument

The risk that the investor cannot sell the debt instrument quickly at a fair price, a common issue in certain corporate debenture markets. 5. Valuation and Yield

The risk that the market value of the bond will decline due to rising interest rates. debt instrument

Details on whether the debt is callable (issuer can pay back early) or puttable (investor can demand early repayment). 3. Primary Types of Debt Instruments The risk that the investor cannot sell the

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 Details on whether the debt is callable (issuer

The specific date on which the issuer must repay the principal amount.

Time deposits offered by banks that act as a debt instrument, where the bank borrows money from the depositor. 4. Risk Assessment in Debt Instruments