What is the Purpose of Bonds?

-Governments and Big Firms issue Bonds to Raise Money. They can be to Finance a Budget Deficit or for new Machinery -Bonds can be sold in the Secondary Market, and Investors can buy it at the Market Price, which may be Bigger or Smaller than the Nominal Value. -When the Bond Matures, the Bondholder is paid the Nominal Value of the Bond by the Issuer.