Asked by Jackson Caleb on May 22, 2024
Verified
A general obligation bond is a bond issue whose proceeds will be used to pay for a project that will produce revenue,such as a toll road or bridge.
General Obligation Bond
A type of municipal bond backed by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project.
Bond Issue
The process by which a company or government raises capital by issuing debt securities, known as bonds, to investors.
Toll Road
A public or private roadway that charges a fee for access or passage, with the fees typically used for the road's construction, maintenance, and operation.
- Identify the differences between general obligation bonds and revenue bonds.
Verified Answer
JS
Jamal SaundersMay 28, 2024
Final Answer :
False
Explanation :
A general obligation bond is backed by the full faith and credit of the issuing municipality rather than revenue from a specific project.
Learning Objectives
- Identify the differences between general obligation bonds and revenue bonds.