Introduction to Government Debt Securities
Debt security is a financial instrument representing a legally binding loan agreement between a creditor and a debtor, where a creditor is a buyer or an investor and a debtor is an issuer. In return for the loan, the buyer will receive interest or discount from the par value on a specified rate and time. Holders of debt securities are paid before shareholders in the event of the issuer's liquidation.
In general, the main features of debt securities include issuer name, par value, maturity date, coupon rate, coupon payment date, type of debt security and covenants.