Final answer:
Preferred stock is the financial instrument among the options given that does not require the payment of interest; it entitles shareholders to dividends, which are not legally required like interest payments on debt.
Step-by-step explanation:
The financial instrument among the given options that does not require the payment of interest is preferred stock. Unlike bonds and notes payable, which are forms of debt that typically require periodic interest payments until the principal is repaid, preferred stock represents equity in a company. Holders of preferred stock receive dividends, which are distributions of a company’s earnings. Dividends on preferred stock are usually set at a fixed rate and are paid out before any dividends on common stock. However, payment of these dividends is not a legal obligation in the same way as interest payments, and they can be suspended if the company is facing financial difficulties.