A negotiable or tradable liability or loan.
- They do this by offering investors a debt security that delivers interest payments and the security of principal repayment.
- Of course, when you are deciding on investing in a debt security, it is important you understand how its characteristics determine what kind of interest rate you can receive.
- To attract investors, any bond or debt security that contains greater risk than that of a similar Treasury bond must offer a higher yield.
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Line breaks: debt se¦cur|ity
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