Concept
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In debt markets,institutions take on debt as a means of securing financing. They can issue bonds which guarantee fixed interest repayments (coupon rate) for a known time period, in return for an initial capital sum provided by the bond holder (face value or par value). The bond’s face value is later repaid by the bond issuer (the bond principal) at the maturity of the bond.The most prominent bond issuers within debt markets include:•Government (sovereign debt)•Corporate•Treasury•Municipal