Refunding Certificate 1879 – Was a circulating bond. Due to an act of Congress in 1879 the Refunding Certificate was issued. The goal was to make government securities accessible to the public. The denomination was smallish at $10.00, putting the certificate within reach of most anyone. Refunding Certificates were to accrue interest at 4% per year indefinitely. In 1907 Congress passed a bill halting the interest on the refunding certificate. This 1907 act rendered them redeemable for $21.30, the amount of accrued interest + Principal from 1879 to 1907.
Today all bonds are simply cash that pays interest.