What is the Bond Market?
The bond market is a financial marketplace where it is possible for investors to arrange to purchase and sell various types of debt securities that are in the form of bonds. There are actually a series of different types of bond markets, with each bond market having a particular focus in the type of bonds that are bought and sold. Corporate bonds are one example of a bond market that allows companies to issue bonds to interested investors. The bonds may be issued with a fixed face value that will eventually be repaid with interest, or issued at a rate that is discounted from the face value, but will eventually pay the face value upon reaching maturity. One thriving sector of the bond market is buying and selling bonds that are issued by a government, various government agencies, or a local municipality, such as a city or town. Often, these types of bonds are introduced on the bond market as a means of raising funds to underwrite a specific project. These types of bonds will usually be
