Revenue bonds are municipal bonds that are backed by income generated from specific projects, such as toll roads, airports, or water treatment plants. The revenue from these projects is used to repay the bondholders rather than the full faith and credit of the issuer.

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Revenue Bonds Are

Question 52

Multiple Choice

Revenue bonds are

A) Treasury bonds backed by the full faith and credit of the issuer.
B) Treasury bonds backed by income generated form specific projects.
C) Municipal bonds backed by the full faith and credit of the issuer.
D) Municipal bonds backed by income generated from specific projects.
E) A type of U.S. agency security.

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