Why might a town decide to issue bonds

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.

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