All things equal,general obligation municipal bonds are safer than revenue municipal bonds.

Question

Quizplus · Accepted Answer

General obligation municipal bonds are backed by the full faith and credit of the issuer, which means the issuer is obligated to use all available resources to repay the bondholders. Revenue municipal bonds, on the other hand, are backed by the revenue generated by a specific project or source, which may fluctuate depending on the success of the project or other factors. Therefore, general obligation municipal bonds are considered safer because their source of repayment is more reliable and less dependent on external factors.

All Things Equal,general Obligation Municipal Bonds Are Safer Than Revenue