True or False: Bonds may be purchased in either the primary or secondary market.

Bonds can indeed be purchased in both the primary and secondary markets. In the primary market, new bonds are issued by corporations, municipalities, or governments, allowing investors to buy them directly at their initial issuance. This is typically when the bonds are sold to raise capital for various needs like operational expenses or project funding.

In contrast, the secondary market is where previously issued bonds are bought and sold among investors. This market provides liquidity, allowing bondholders to sell their bonds before maturity, facilitating a dynamic trading environment. It allows for price discovery based on current interest rates and market conditions.

Understanding this dual-market structure is crucial for investors. It allows them to strategize their bond investments more effectively, whether they're looking for new issues or wanting to trade existing bonds based on shifts in the market. Thus, the answer is indeed true, as both markets are integral to the bond investment landscape.