What is the relationship between mercy and grace in the Bible?

Mercy and grace are foundational to the Christian experience and are often mentioned together in scripture. While grace refers to God giving us blessings we do not deserve, mercy involves His compassion in not giving us the punishment we deserve. They are intricately connected; grace leads to mercy, and vice versa. For instance, in the context of our sin, God's mercy compels Him to respond with grace toward us, offering salvation through faith in Christ. Understanding this relationship enhances our appreciation of God's character and the fullness of His redemptive work, as seen in Colossians 1:20, where peace is made through the blood of Christ, demonstrating both His grace and mercy.