Bond and term loans are both the methods to borrow money by Govt as well as firms but bonds are financial tradable instruments which can be sold throughout the life of bond whereas loans are contracts that are not tradeable. Interest on bonds are fixed but with bonds, they are variable.
The main advantage of a term loan is that the lenders have the option to reach out a large number of lenders offering different loan structures and interest rates and therefore more probability of getting a favourable interest rate versus rigid interest rates in case if bonds
Get Answers For Free
Most questions answered within 1 hours.