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The state issued bonds are sold to investors or stakeholders. The purpose of such bonds is to generate cash for projects being carried out by state, such as roads, buildings, or other projects for citizens.

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10y ago

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What is a Municipal Bond and am I exempt from paying tax?

Municipal bonds, which are issued by cities, states and other local government entities, are free from federal taxes. And if the bond is issued in the state in which you live, they're also free of state and local taxes.


How can you find out what company holds a dealer's bond?

It varies by state since it's state-issued, most you can check online. If they have dealer tags, in general they have a dealer's bond.


What is the purpose of convertible bonds?

A convertible bond is issued by financial institutions. It differs from standard bonds in that it can be converted into company stock. The purpose of this is to provide additional security for the customer.


What is a fugitive bond?

A fugitive bond is really just like a normal bond. When one state has a warrant out for your arrest, that is entered into NCIC, and you are arrested in another state.....then the arresting state can post a bond for you, referred to as a fugitive bond. They basically give you a set number of days to head back to the State that issued the warrant and handle your business or they put you back in jail and revoke the 'fugitive bond'.


What is a War Loan Bond?

A war loans are debt securities issued by a government for the purpose of financing military operations during times of war.


How do state or local governments pay off the principal and interest of municipal bonds issued?

Revenue bond issued to raise money for public-works project and general obligation bond (GO) to levy taxes to pay back the debt


What are corporate bonds issued for?

A corporate bond is a bond issued by a corporation for the purpose of raising funds and expanding the business. These bonds are usually long-term (i.e. at least one year) and generally offer a higher yield than some other investments. Corporate bonds carry a higher risk of default than other investments such as government bonds, depending on the given corporation and the state of the market.


What was the purpose the bond of 1844?

purpose of the 1844 bond


Municipal bonds are issued by?

A municipal bond is a bond issued by a local government such as cities, states and counties. The bond is usually issued to help finance a large project like building a park or school.


What is bond issued by the government tax free interest?

A bond issued by the government that provides tax-free interest is typically referred to as a municipal bond. These bonds are often issued by state or local governments to fund public projects, and the interest earned is usually exempt from federal income tax, and sometimes state and local taxes as well. This tax advantage makes municipal bonds an attractive investment option for individuals in higher tax brackets seeking to minimize their tax liabilities.


What is corporate bonds?

A Corporate Bond is a bond issued by a corporation as a way to borrow money.


What are examples of a bond market?

Examples of bond markets include the U.S. Treasury market, where government bonds are issued and traded, and the corporate bond market, where companies issue bonds to raise capital. Additionally, municipal bond markets involve state and local governments issuing bonds for public projects. Internationally, bond markets can be seen in regions like the Eurobond market, where bonds are issued in currencies other than the home currency of the issuer.