Debt Instrument

Business, Legal & Accounting Glossary

Definition: Debt Instrument

What is the dictionary definition of Debt Instrument?

Dictionary Definition

debt instrument is a security issued to borrow money. Typical ones include bonds and debentures. They may be issued by corporations, governments, or government agencies. Most pay interest at specified rates and are fixed-income securities. Exception: zero-coupon bonds

Full Definition of Debt Instrument

A debt instrument is a contractural or written assurance to repay a debt.

A debt instrument can be a promissory note, a bill of exchange, a bond or other such instrument. A debt instrument may also be referred to as an instrument of indebtedness. In most cases, a debt instrument can be sold, traded, or otherwise used as a form of currency or barter, with the debt owed to the debt instrument’s current holder. A debt instrument backed by a government agency – such as a U.S. Treasury Bond – or a highly-rated corporate bond with a fixed dollar payment may be defined as an asset. Defaulting on a debt instrument may result in the loss of the pledged collateral, or in a reduction of the credit rating of the entity which issued the debt instrument.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Debt Instrument. Payroll & Accounting Heaven Ltd. September 23, 2021
Chicago Manual of Style (CMS):
Debt Instrument. Payroll & Accounting Heaven Ltd. (accessed: September 23, 2021).
American Psychological Association (APA):
Debt Instrument. Retrieved September 23, 2021, from website:

Definition Sources

Definitions for Debt Instrument are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th August, 2021 | 17 Views.