Which of the following bonds is issued to fund the construction of a facility to be used by a private firm?

Question

Quizplus · Accepted Answer

An industrial development bond is issued to finance facilities for private businesses, including factories, research and development centers, and other such facilities. The bond is repaid through the revenue generated by the facility. On the other hand, general obligation bonds are issued to finance projects for the benefit of the community, such as schools, parks, and public buildings, and are backed by the full faith and credit of the issuer. Revenue bonds are issued to finance projects that generate revenue, such as toll roads and airports, and are backed by the revenue they generate. Excise bonds are a type of surety bond required by the government for businesses that sell products such as alcohol, tobacco, and firearms.

Which of the Following Bonds Is Issued to Fund the Construction