A municipal bond issued to finance an airport,hospital,turnpike,or port authority is typically a ____________.

Question

Quizplus · Accepted Answer

Revenue bonds are issued to finance specific projects that generate revenue, such as airports, hospitals, turnpikes, or port authorities. The revenue generated by the project is used to repay the bondholders. In contrast, general obligation bonds are backed by the issuer's full faith and credit and can be used to fund a variety of projects, while industrial development bonds are used to finance the development of facilities for private businesses. Therefore, revenue bonds are the most likely choice for financing the mentioned projects.

A Municipal Bond Issued to Finance an Airport,hospital,turnpike,or Port Authority