Why might a town decide to issue bonds

The reason why a town decide to issue bonds is : to finance local governments public projects.
Often times, it's impossible for a town to spend all of their money in one go in order to finish their project. So one way to get around this is by taking a credit from many people or institution so they can pay off their expense little by little

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jamuuj jamuuj · Answer 2 · 2018-10-17T07:37:38+02:00

Answer

- To save money for their residents

- To fund projects e.g building of new roads or bridges e.t.c

Explanation

Bonds are long-term lending agreements between a borrower and a lender The people who purchase bonds receive interest payments during the bond's term at the bond's stated interest rate. These bonds enable the residents to earn a return on their savings, since they are entitled to be paid back by the town with interest at a predetermined date.

A town need funding to finance certain projects that serve a civic purpose, they will issue municipal bonds as a way to supplement revenue for these public projects.