Are debt certificates that are purchased by an investor?

[niyati]

I’m learning about financial instruments and came across the term debt certificates, like bonds or debentures. I understand they are purchased by investors, but I’m a bit confused about how they are treated in accounting.

 

[alenaghose]

Debt certificates purchased by investors are commonly known as bonds. These bonds represent a loan made by the investor to the issuer (a company or government) with the promise of repayment of the principal amount at maturity, along with interest payments.

 

[Jarwish]

Yes, debt certificates are financial instruments representing a loan made by an investor to an entity such as a corporation or government. Common types include bonds, debentures, and notes. The investor earns interest and is repaid the principal at maturity, making them a form of fixed-income investment.

 

[Gsusangrey]

Yes, investors can purchase debt certificates, which are financial instruments representing loans made to governments or corporations. These include bonds, treasury bills, and commercial paper, offering fixed interest payments and principal repayment at maturity. They're traded in debt markets.

 

[Olivia]

Yes, debt certificates are like IOUs. They are purchased by investors who are lending money to a company or government. In return, the investor gets regular interest payments and is repaid the full amount later.

 

[robertwilliam]

Yes, debt certificates, specifically bonds, are purchased by investors. When an investor buys a bond, they are essentially lending money to the issuer (government or corporation). In return, the issuer promises to repay the principal amount (face value) of the bond at maturity and make interest payments (coupon payments) at specified intervals.

 

[Rick_Grimes]

Yes — debt certificates are basically bonds or similar instruments that investors buy. When you purchase one, you’re lending money to the issuer (like a company or government), and in return, they promise to pay you interest plus the original amount back at maturity.

 

[Lucas]

Yes, debt certificates are financial instruments that represent a loan made by an investor to a borrower (usually a company or government). When an investor purchases a debt certificate, they are essentially lending money in exchange for regular interest payments and the return of principal at maturity.

 

[devinluke]

Yes, investors normally buy debt certificates. They are a loan to a issuer (such as a government or corporation) in the form of periodic interest payment and the rendering of the principal on maturity. They resemble bonds, and they provide a fairly safe investment.

 

[deepak]

Bonds are the most common type of debt certificate purchased by an investor. A bond represents a loan made by the investor to a borrower, such as a corporation or government. In return for the loan, the issuer promises to repay the principal amount at a specified date and make regular interest payments.

 

[Samuel]

Bonds are the most frequent sort of debt certificate purchased by an investor. An investor's debt to a borrower, like a government agency or firm, is represented by a bond. In return for the loan, the issuer pledges to repay the principal amount at a predetermined date and make regular interest payments.

 

[jatin]

The most common type of debt certificate that investors buy is a bond. A bond represents an investor's debt to a borrower, such as a company or government agency. The issuer agrees to make monthly interest payments and repay the principal amount at a prearranged date in exchange for the loan.