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In effect, these are both instances of an institution taking a loan from an individual.
When you put your money into a bank, you are in essence loaning your money to the bank. They pay you interest on the money, and then they loan it out at a higher interest rate and keep the difference. Likewise, when you take out a bond you are in effect loaning your money to the government, which will pay you back with interest at a later time.
Michael Scalise
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What best explains how bondholders and banks serve a similar function?
They are both holders of someone else's debt.
Why is a bondholder similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
Why a bondholder is similar to a bank?
Apex :) Bondholders loan money to bond issuers just as banks loan money to customers
Best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What best explains how bondholders and banks serve a similar function?
They are both holders of someone else's debt.
Why is a bondholder similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
Why a bondholder is similar to a bank?
Apex :) Bondholders loan money to bond issuers just as banks loan money to customers
Best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What Best explains how bondholders and banks serve a function?
They are both holders of someone else's debt.
Do bondholders have voting rights?
No, only stockholders have voting rights. Bondholders do not.
In the event of a firm's dissolution the firm claim on its assets belong to?
bondholders.
When did Corporation of Foreign Bondholders end?
Corporation of Foreign Bondholders ended in 1988.
When was Corporation of Foreign Bondholders created?
Corporation of Foreign Bondholders was created in 1868.
What best explains why a bond holder is similar to a bank?
Bondholders loan money to bond issuers just asbanks loan money to customers.
How does the cost of debt differ from the required rate of return for bondholders?
Question 4 How does the cost of debt differ from the required rate of return for bondholders?
