What is a debt certificate issued by a multinational company or another corporate enterprise called?

A debt certificate issued by a multinational company or another corporate enterprise is known as a corporate bond. Corporate bonds are investment instruments where investors lend money to corporations for a specified period at a fixed interest rate. In return, the company promises to pay back the principal amount on a specified maturity date, along with periodic interest payments.

This form of financing is commonly used by corporations to raise capital for various purposes such as expanding operations, financing research and development, or refinancing existing debt. The characteristics of corporate bonds, including their risk and return dynamics, differentiate them from other types of bonds, such as government bonds (issued by national governments), municipal bonds (issued by local or state governments), or over-the-counter bonds, which are typically traded directly between parties and may not have formal exchanges. Understanding the distinction between these types of bonds is essential for investors assessing risk and making informed decisions in the debt market.