Debt markets are securities exchanges on which a company raises cash to finance short-term needs or long-term projects. An investment bank typically assists a firm in selling debt products, such as bonds and convertible bonds, on domestic and international securities exchanges.

Interest payments

A buyer of debt products, or a bondholder, receives periodic interest payments and, either in tranches or in ‘bullet’ (i.e. the total amount in one go) at maturity, the principal amount loaned.

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