Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
Debt service refers to the interest you pay on a debt in a year.
Why do you need to know this stuff? Well, for the IRS. The IRS may give you a tax break on the interest you pay on a business loan, so you may need to tally up the interest you've paid in a tax year. Banks might be interested in your debt service if you apply for a loan and the bank needs to figure out whether you have too much debt already.