When an individual borrows money to purchase a home, a type of debt called a \”mortgage\” is created. A single organization such as a bank or credit union will loan money to the homeowner, who, in return, makes monthly payments to pay off the loan.

When an institution such as a government, a government agency, or a corporation wants to borrow money, it can do so by creating a form of debt called a \”bond.\”

Learn more about bonds below.