The two principal types of municipal bonds are:

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The two principal types of municipal bonds are revenue bonds and general obligation bonds. Revenue bonds are backed by the revenue generated by a specific project or facility, while general obligation bonds are backed by the full faith and credit of the issuing municipality. It is important to note that while revenue bonds are often used to finance infrastructure projects like airports or toll roads, general obligation bonds can be used to finance a wide range of municipal expenses, including public safety and education.

The Two Principal Types of Municipal Bonds Are