Debt Insurance

Money raise from the company bond holders is Debt Insurance. It is the bond where company or government sign a bond to pay the lender interest amount for a certain amount of time. Amount which is paid is usually basis of monthly or quarterly, sometimes know as coupon. At the end of time or period borrower have to pay the whole amount to the lender.

Different kinds of Debt Insurances

There are different kind of debt insurances one is government and other is corporate. Federal, state and
local corporate. Government issues debt or bond when they need money for building roads, bridges, hospital, school, or any day to day operation. Sometimes these debt issues are know as municipal and Treasury bonds. Most of the time corporate company issue bond and securities for capital project, acquisition and many more.

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