What would be the best way for the federal government to attract investors toward purchasing bonds over other investment options?

increase the term of the treasury bond

designate bonds for specific public goods

introduce more Treasury notes

offer high interest rates

The best way for the federal government to attract investors toward purchasing bonds over other investment options offer high interest rates.

Explanation:

Interest is the amount that investors or lenders earn when they initiate a loan that the borrower in a specified amount of time repays. The borrower can sometimes be a bank.

The percentage of amount loaned that the lender charges to lend his/her money. For example, $100 for 3 months at 2% per month.

Offering high rate of interest would help in increasing the investors to purchase bonds.

Banks earn by the investing the amount invested by the customers in some other firms on short term notes. For example, if A invests $1000 at 8%, the bank may invest the amount in firm X for 10% on short term and thereby yielding profit.