Terry City is considering issuing $50 million in debt to finance construction of a new sewer system. REQUIRED: Compare the possible financial effects of the city's decision to finance the new system with
(a) General obligation debt
(b) State-issued sewer revolving bond fund debt, which carries the moral obligation of the state in addition to being a primary obligation of the city through its loan payments to the state
(c) The city's own sewer revenue bonds, or
(d) General obligation debt insured by a company specializing in municipal bond insurance.

Question

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The Answer of Terry City is considering issuing $50 million in debt to finance construction of a new sewer system. REQUIRED: Compare the possible financial effects of the city's decision to finance the new system with
(a) General obligation debt
(b) State-issued sewer revolving bond fund debt, which carries the moral obligation of the state in addition to being a primary obligation of the city through its loan payments to the state
(c) The city's own sewer revenue bonds, or
(d) General obligation debt insured by a company specializing in municipal bond insurance.

Terry City Is Considering Issuing $50 Million in Debt to Finance