Explain general features of Debt Instruments. Briefly describe the different Debt Instruments that are in use in the Financial Markets.

General Features of Debt Instruments

Debt instruments are financial tools used by entities such as governments, corporations, or financial institutions to raise capital. They represent a loan made by an investor to the issuer of the debt. The general features of debt instruments include:

1. Principal: The principal, also known as the face value or par value, is the amount of money that the issuer agrees to repay the bondholder at maturity. It is the base amount on which interest payments are calculated.

2. Interest Rate: Also known as the coupon rate, this is the rate at which interest is paid on the principal amount. Interest payments are typically made at regular intervals, such as annually or semi-annually.

3. Maturity Date: The maturity date is when the debt instrument expires and the issuer must repay the principal amount to the _____ ____ _____ _________ _______ ___.
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