Why are bonds issued?

Bonds are issued by governments, municipalities, and corporations to raise funds for various purposes, such as financing projects, infrastructure development, or covering operating expenses. By issuing bonds, entities can borrow money from investors, who receive periodic interest payments and the return of the principal at maturity. This method of financing allows issuers to access capital without diluting ownership, as is the case with equity financing. Additionally, bonds can attract a wide range of investors seeking stable returns.