SIE practice questionmediumMunicipal bonds
Which municipal bond type relies primarily on specific project revenues to pay debt service?
- ADouble-barreled bond
- BGeneral obligation bond
- CTax anticipation note
- DRevenue bond✓ Correct answer
Explanation
Why D — Revenue bond
Revenue bonds are paid from project revenues, not general taxes. GOs rely on taxing power, TANs are short-term, and double-barreled have dual backing.
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