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In the discussion, Kirsta explains the concept of parent company guarantees, emphasizing the various types involved across different sectors. She contrasts bonds and guarantees, highlighting that they serve distinct purposes. A bond is an independent obligation issued by one party and does not rely on an underlying contract, with payment triggered by specific conditions. In contrast, a guarantee is intrinsically linked to the underlying contract and depends on its terms. This fundamental legal difference is crucial in understanding the roles and implications of each in financial agreements, marking them as markedly different entities within banking and finance.