Distinguish, differentiate, compare and explain what is the difference between Bond and Loan. Comparison and Differences.
Differences between Bond and Loan
| S.No. | Bond | Loan |
| 1 | Bonds can be sold by governments or firms. | Loans are taken out by firms and consumers looking to borrow money. |
| 2 | Interest rate are usually fixed on a bond for the period of bond. | Loans can be of fixed rate, but often are variable - changing with basic rates. |
| 3 | Bonds can be sold on bond market to public / financial institutions. | Most loans are given by banks. |
| 4 | Bonds are often bought and sold on bond market. Value of bond can go up and down. | Loans are usually fixed with original bank. |
| 5 | Examples: 10-year US Treasury bond. | Examples: Variable bank loan. |
| 6 | Govenment bonds yields likely to be lower interest rate and are seen as safe investment. | Bonk loans on unsecured lending can be quite high. |
Similarities between Bond and Loan
Both are methods for firms or government to borrow money. The firm / government will pay annual interest rate payments on both bonds and loans.
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Difference between Loan vs Bond
Bond vs Loan
Differences between Loan vs Bond
