If a city wants to raise funds to build a new baseball stadium and pay off the debt with revenues raised through ticket and concession sales, which of the following types of securities should it consider using?

Question

Quizplus · Accepted Answer

Revenue bonds are a good choice in this scenario because they are backed by the future revenues generated by the baseball stadium. This means that the city's taxpayers are not responsible for paying off the debt, as they would be with general obligation bonds. Inflation-indexed bonds and Treasury STRIPS are not relevant in this situation.

If a City Wants to Raise Funds to Build a New