Asked by stefanie gacho on Apr 27, 2024
Verified
A ______ bond is a bond whose proceeds are to be used to pay for a project that will not produce any income.
A) government bond
B) corporate bond
C) revenue bond
D) general obligation bonds
General Obligation Bonds
Bonds issued by municipalities that are backed by the full faith and credit of the issuing government, promising to repay the debt with general revenue.
Revenue Bond
A type of municipal bond supported by the revenue from a specific project, such as a toll bridge or highway.
- Become familiar with the primary characteristics and categories of bonds.
- Recognize the tax implications of various bond types.
Verified Answer
LS
Loren SandersMay 01, 2024
Final Answer :
D
Explanation :
General obligation bonds are used by municipalities to fund projects that do not generate revenue, such as parks or schools, and are backed by the full faith and credit of the issuing municipality.
Learning Objectives
- Become familiar with the primary characteristics and categories of bonds.
- Recognize the tax implications of various bond types.
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