Municipal bonds whose primary source of repayment are the revenues from the underlying financed project are known as:
A) general obligation bonds.
B) credit free bonds.
C) revenue bonds.
D) exempt bonds.
E) liquidity bonds.

Question

Quizplus · Accepted Answer

Revenue bonds are issued to finance revenue-generating projects such as toll roads, bridges, airports, or utilities. The primary source of repayment for revenue bonds are the revenues generated by the underlying project, rather than the full taxing power of the issuer. This means that the bondholders rely on the success of the project to receive payment, rather than the financial stability of the issuer.

Municipal Bonds Whose Primary Source of Repayment Are the Revenues