The principal and interest payments on revenue bonds are secured by the fees or charges imposed on the users of a facility run by a state or local government entity managing the facility.

Question

Quizplus · Accepted Answer

Revenue bonds are a type of municipal bond where the repayment of the principal and interest is primarily secured by the revenue generated from the specific projects or facilities for which the bonds were issued, such as toll roads, bridges, or water treatment plants, rather than from a tax.

The Principal and Interest Payments on Revenue Bonds Are Secured