Debt Instrument

Business, Legal & Accounting Glossary

Definition: Debt Instrument



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.


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Debt Instrument. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/debt-instrument/ (accessed: July 02, 2020).
American Psychological Association (APA):
Debt Instrument. PayrollHeaven.com. Retrieved July 02, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/debt-instrument/

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: 7th February, 2020 | 15 Views.