Let’s look at a conversation between Tommy & Jeff. Tommy has 5 Hot Wheels and Jeff has none. Jeff wants to play with the Hot Wheels so Tommy decides that Jeff can play with two of them for one month, but he has to give Tommy two candy bars over the course of the month, then return the cars.
Tommy owns the cars that is his equity. Equity = ownership. By lending the cars to Jeff, and charging him candy bars to be paid during the time Jeff can use the cars = income. By borrowing the cars and paying a return during the loan period, the cars end up acting like a bond. Jeff gets to use and pays interest.
Owning Hot Wheels = Equity. Borrowing Hot Wheels = income.

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