What is a bond and how does it differ from a loan?

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What is a bond and how does it differ from a loan?

In: Economics

5 Answers

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Bond: One borrower (typically company or government) raises money from many lenders, who buy the bond as an investment.

Loan: One borrower borrows money from one lender, who lends money in the normal course of business (e.g. a bank).

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