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The issuers use the bonds to raise funds to help reach their financial goal. The underwriters are usually financial institutions including investment banks that will assist the issuer in selling the bonds. The purchaser is the final part of the bond market. This is where the funds come from for the issuer (Investopedia 2, 2007).
The issuers of bonds can be the government, corporations, or smaller businesses that need to raise funds for different business needs such as expanding, obtaining large assets for the business or other financial needs. The underwriter is a commercial or investment bank that purchases new issues of bonds for resale (GroLen, 2002)...
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