Public officials in small towns who participate infrequently in the bond market need information about bond financing. This publication, one in a series of booklets published by the Western Rural Development Center using research gathered between 1967-77, discusses factors influencing the marketability and cost of bond financing for towns and cities in Washington, Colorado, Montana, and Wyoming, and identifies opportunities for towns and cities to trim their costs of financing bonds. Sections include: a definition of bond costs, factors affecting bond interest costs, national capital market conditions, characteristics of the issue, reducing flotation costs, a summary, and a glossary of terms. Appended is a summary of data on which the research was based. (AH)