I want to do some very back-of-the-envelope calculations. (I will probably get the arithmetic wrong.)
A bond-financed deficit is where the government prints bonds to finance a deficit. A money-financed deficit is where the government (or the central bank it owns) prints money to finance the deficit. They are different for two reasons:
1. Money is the medium of exchange and unit of account.
2. Money usually pays lower interest rates than bonds.
Here I want to concentrate on that second reason. To keep it simple, I will assume that the money the government prints is currency that pays 0% nominal interest. I will ignore the cost of paper and ink.