Answer
The answer is: Interest payments and capital appreciation.
Explanation
An investor can make money off debt primarily through interest payments and the potential for capital appreciation. When an investor purchases debt instruments, such as bonds or loans, they receive regular interest payments, which provide a steady income stream. Additionally, if the value of the debt instrument increases over time, the investor can sell it for a profit.
Investors may also benefit from the creditworthiness of the borrower; if the borrower has a strong credit rating, the risk of default is lower, making the debt investment more secure and potentially more profitable.