§ 13242 Bond Issuance And Terms

• •The government can sell bonds (like IOUs) to borrow money.
• •The people in charge decide how much each bond is worth.
• •The government has to pay back the money on a specific day, with extra money (interest) added twice a year.

Imagine the city needs money to build a new park.

They might sell bonds to people. If you buy a $100 bond, the city promises to pay you back $100 plus a little extra (interest) every 6 months until the full amount is paid back.