What is the percentage of the principal that is due for the use of funds secured by a note called?

The percentage of the principal that is due for the use of funds secured by a note is referred to as the interest rate. The interest rate represents the cost of borrowing the principal amount, expressed as a percentage. This rate dictates how much the borrower will pay over time for the privilege of using the lender's funds.

In the context of loans and notes, the interest rate is a critical component as it affects the overall cost of the loan and influences the payment schedule. It is often annually expressed but can also be monthly or for another time frame, depending on the terms of the note.

The other terms listed serve different financial concepts. Yield refers to the income generated from an investment, expressed as a percentage of its cost or current market value. Markup typically applies to pricing and sales, indicating the amount added to the cost price of goods to arrive at the selling price. Dividend rate relates to the distribution of profits to shareholders, expressed as a percentage of the share price. Understanding these distinctions reinforces why interest rate is the correct choice in relation to the context of funds secured by a note.