If bonds are loans between issuers (borrower) and managers (lenders), how are we as individuals able to invest in them?

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Are issuers selling a portion of their borrowed money to the public as bonds? If so, how does a public price increase for a bond happen? Also how do issuers make profit off of their publicly sold bonds?

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Anonymous 0 Comments

When someone writes a loan it’s just a contract between the person giving the money (the bond buyer) and the person borrowing the money (the bond issuer). It’s the reverse if a car loan. You are asking to borrow money and in a sense you’re issuing a bond at a stated interest rate that the bond buyer can then resell on a secondary market should they wish to.

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