DEFINITION of 'Certificate Of Indebtedness'

A short-term fixed income security once issued by the United States Treasury that had a coupon. A certificate of indebtedness was something of an "IOU" from the U.S. government, giving certificate holders the promise of a return of their funds with a fixed coupon, much like any other type of U.S. treasury. In 1981, the U.S. government stopped issuing such certificates and replaced them with short-term t-bills.

BREAKING DOWN 'Certificate Of Indebtedness'

Unlike treasury bills - which are sold at a discount and mature at par value without a coupon payment - certificates of indebtedness offered fixed coupon payments. Certificates of indebtedness typically matured in one year or less, much like the treasury bills and notes that succeeded the now-defunct certificates.

RELATED TERMS
  1. One-Day Certificate

    A type of temporary financing used by the U.S. Treasury. One-day ...
  2. Coupon Bond

    A debt obligation with coupons attached that represent semiannual ...
  3. Push Out

    One of two ways to effect a stock split. In a push out, new share ...
  4. Periodic Payment Plan Certificate

    A certificate representing ownership interest in a periodic payment ...
  5. Currency Certificate

    A note that grants the holder the right to convert a specific ...
  6. Coupon Rate

    The yield paid by a fixed income security. A fixed income security's ...
Related Articles
  1. Investing

    The Pros & Cons Of Using Coupons For Your Business

    Coupons can drive business to your store – you just need to make sure it's profitable business. Here are strategies that work.
  2. Investing

    What is a "Coupon"?

    In the financial world, “coupon” represents the interest rate on a bond.
  3. Investing

    Explaining the Coupon Rate

    Coupon rate is the stated interest rate on a fixed income security.
  4. Personal Finance

    Couponing 101: Dos and Don'ts

    Coupon clipping isn't new, but it has gone digital. Find out how to use coupons to your advantage today.
  5. Personal Finance

    Is Coupon Clipping A Waste Of Time?

    Coupons reduce the cost of a product or service, but are the savings really worth the time it takes?
  6. Investing

    Old Stock Certificates: Lost Treasure Or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
  7. Investing

    Introduction to Treasury Securities

    Purchasing bonds that are backed by the full faith and credit of the U.S. government can provide steady guaranteed income and peace of mind. Knowing the characteristics of each type of treasury ...
RELATED FAQS
  1. How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Answer >>
  2. I hold stock certificates in a company that just had a stock split. What happens ...

    The short answer is that a stock split will have little effect on the holder of stock certificates. In most cases when an ... Read Answer >>
Hot Definitions
  1. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  2. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  3. Absolute Advantage

    The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost ...
  4. Nonce

    Nonce is a number added to a hashed block, that, when rehashed, meets the difficulty level restrictions.
  5. Coupon

    The annual interest rate paid on a bond, expressed as a percentage of the face value. It is also referred to as the "coupon ...
  6. Socially Responsible Investment - SRI

    Socially responsible investing looks for investments that are considered socially conscious because of the nature of the ...
Trading Center