This paper investigates the costs and benefits of establishing a secondary bond market in Bangladesh.Bangladesh has a primary bond market but a weak secondary one.Like other developing countries,Bangladesh desperately needs financing for its infrastructure projects and industrial expansion. An active secondary market opens an alternative option for financing development projects and attracting investors.Both the public and private sectors require long-term financing facilities to make the right investments in key sectors of the economy.Evidence from our analysis shows significant benefits for the economy from a secondary bond market.