pay back a loan with interest. Answer the questions that follow with regard to the bond market.

b$.$ Investments can require large amounts of capital up$-$

front. It can be hard for large corporations to acquire the

necessary funds for large investments from just one

entity $($like a bank$).$ The bond market thereby provides a

way to

fund government debt.

channel funds from savers to borrowers.

create liquidity.

reduce corporate debt.

d$.$ When a company issues bonds in the bond market, the

company finances its project not through one entity, such

as a bank, but many savers. The bond market thus helps

to

fund government debt.

spread risk.

create liquidity.

channel funds from borrowers to savers.