Asked by Fitri Hj Ahmad on May 22, 2024
Verified
A municipal bond issued to finance an airport, hospital, turnpike, or port authority is typically a
A) revenue bond.
B) general-obligation bond.
C) industrial-development bond.
D) revenue bond or general-obligation bond.
Industrial-Development Bond
A government-issued bond to support the development of industrial projects, often tax-exempt for the buyer.
Revenue Bond
A type of municipal bond supported by the revenue from a specific project or source, rather than general tax revenues.
General-Obligation Bond
A type of municipal bond that is secured by the full faith and credit of the issuing government, including its taxing power to repay the bondholders.
- Discern and separate different forms of bonds based on their protection, intent, and attributes.
Verified Answer
JA
James AbbottMay 22, 2024
Final Answer :
A
Explanation :
Revenue bonds are issued to finance specific projects like airports, hospitals, turnpikes, or port authorities, and their repayment is usually secured by the income generated from those projects.
Learning Objectives
- Discern and separate different forms of bonds based on their protection, intent, and attributes.