Business Studies, asked by madhusgowda2379, 1 year ago

Why might a town decide to issue bonds

Answers

Answered by myrakincsem
1
That's sure to be a one of the question  from your business book . i will try to help you  in finding the answer.
One reasons behind town's bond issue is that they want to save money for their local in the form of  these bond so that they can help effectively.
The other reason is to invest these bonds in order for development off the town like the  building of new roads , bridges and other things like that. 
Answered by Priatouri
0

To save money for their residents and to build new roads or bridges, are the right answers.  

When a town issues the bond, it is circulating an IOU with attention, customarily to help fund scheme (such as roads or bridges) or to produce a public service. We must keep in mind that the town is accumulating bills for residents only if it is the inhabitant of the town who buys the bonds. These bonds permit the inhabitants to secure a return on their economies since they are designated to be paid back by the city with interest at a planned date.

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