What type of financial instrument is a debt certificate issued by a multinational company?

A debt certificate issued by a multinational company is classified as a corporate bond. This type of financial instrument is essentially a way for companies to raise funds by borrowing from investors, with the promise to pay back the principal plus interest over a specified period. Corporate bonds are typically issued by corporations to finance various projects, expand operations, or manage other financial needs.

In contrast, municipal bonds are issued by local government entities and not by private companies, making them unsuitable as a classification for a company-issued instrument. Over-the-counter bonds do not specifically refer to the nature of the issuer; they describe the method of trading in the bond market, usually referring to bonds that are traded directly between parties rather than on a formal exchange. Government bonds, on the other hand, are issued by national governments and are not applicable to instruments issued by multinational corporations.

Therefore, the classification of the financial instrument as a corporate bond accurately reflects its nature as a direct obligation of a company to its investors.