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.