Interest-bearing notes issued to bondholders are referred to as what?

Interest-bearing notes issued to bondholders are referred to as bonds because they are essentially a form of debt security. When an entity, such as a corporation or government, issues bonds, it is borrowing money from investors (the bondholders) with a promise to pay back the principal amount on a specific date, known as the maturity date. In the meantime, the issuer pays periodic interest to the bondholders, which is a defining characteristic of bonds.

Bonds serve as a means for issuers to raise capital while providing investors with a stable income stream through interest payments. The legal agreements associated with bonds outline the terms of the loan, including the interest rate and payment schedule. Other terms like "debentures" can also refer to specific types of bonds, particularly those that are not secured by physical assets. However, in a general sense, the broad category that includes various types of interest-bearing notes, including those secured and unsecured, is referred to as bonds.