Question

3) In the market for bonds, who supplies the bonds and who demands the bonds?

Answer 1

Bonds are supplied by either government or publicly traded companies. they issue a bond which promises to give back a certain amount after a certain period of time. to finance their work, companies and government uses bonds to raise capital for their working.

people who want to invest their money from their money intended for investing actually demand the bonds. they want to make some amount of financial gain by investing in the bonds within a fixed period of time. banks, other financial institutions also invest in bonds. hence general public, banks and financial institutions like investment companies demand the bonds.

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