Importance/value of bonds

In describing a commonwealth, Hobbes calls the head of the Leviathan and the carrier of the combined state’s power, a “sovereign.” However, in this quote, he states that one is not considered a sovereign unless their power is supreme and unlimited. This cannot be achieved in the case of unrestricted representatives or two sovereigns, as their powers would potentially limit each other. They would also not be superior to each other and thus, not supreme. Therefore, to be considered a sovereign, the head of the Leviathan must be an individual with unlimited power. Though governed by a single ruler or a monarch, the Leviathan is one of republican origins and purposes as it was made by the people, in service of the people, which leave them accountable to the great Leviathan’s actions. This is highlighted in Hobbes’ definition of the Commonwealth:

“one person, of whose acts a great multitude, by mutual covenants one with another, have made themselves every one the author, to the end he may use the strengths and means of them all, as he shall think expedient for their peace and common defense” (Hobbes, pg.109, s.13).

In this passage, Hobbes recognizes that in agreeing with the social contract the people accept accountability or “make themselves the authors” of the sovereign’s actions or legislation. He also recognizes that such legislations are created with the sole purpose of guaranteeing the public’s will for peace and common defense. Therefore, being the co-authors and benefactors of these laws, the public is as influential to the reigning of a commonwealth as the sovereign is, making it a rule by all through the ruling of one. When listing the rights of a sovereign in a Leviathan, Hobbes claims that it is impossible to i

Sample Solution

A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. Bonds can provide a means of preserving capital and earning a predictable return. Bond investments provide steady streams of income from interest payments prior to maturity. The interest from municipal bonds generally is exempt from federal income tax and also may be exempt from state and local taxes for residents in the states where the bond is issued.