Bond purchasers vary widely, encompassing a diverse range of entities such as corporations, governments, and individuals. These bonds serve as a form of debt that these entities utilize to raise capital for various purposes. Corporations often issue bonds as a means of financing their operations or expansions. By selling bonds, corporations can acquire immediate funds from investors, promising to repay the principal amount along with interest at a later date.
On the other hand, governments also frequently turn to bond markets to finance public projects and services. This includes infrastructure development, social programs, and other governmental initiatives. Governments issue bonds to investors both domestically and internationally, offering them a way to invest in the government’s initiatives while earning a return on their investment in the form of interest payments.
Lastly, individuals constitute another significant segment of bond purchasers. Individuals may buy bonds directly from issuers or through the secondary market. Bonds can be an attractive investment option for individuals seeking steady income streams and relatively lower risks compared to other investment avenues. They may opt for government bonds for their stability or corporate bonds for potentially higher yields.
(Response: Bond purchasers include corporations, governments, and individuals from various sectors. They buy bonds as a means of raising capital, financing operations, or investing for returns.)