Revenue bonds are
A)used to finance specified projects.
B)issued at yields that are usually below taxable bonds of similar maturity.
C)paid off with the proceeds of specific projects.
D)All of the above

Question

Quizplus · Accepted Answer

Revenue bonds are issued to finance specific projects, such as highways, bridges, or public buildings. They are paid off with the revenue generated by the project, rather than from tax revenue. Because revenue bonds are backed by the project's revenue stream, they generally have a lower default risk than general obligation bonds, which are backed by tax revenue. As a result, revenue bonds are often issued at yields below comparable taxable bonds.

Revenue Bonds Are