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Introduction to General Obligation Bonds

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Learn about a special kind of municipal bond called a general obligation (GO) bond. In this tutorial, you will learn how they are secured and how investors receive their payments from them. Besides discussing their risks and advantages, the tutorial explains where you can buy them.

What you will learn

  • General Obligation Bonds
  • General Obligation Bond Payments
  • Advantages and Disadvantages of General Obligation Bonds
  • Buying General Obligation Bonds

What do you know?

Introduction to General Obligation Bonds

There are two types of municipal bonds—revenue bonds and general obligation (GO) bonds. The difference between the two types is the kind of collateral used to secure their payments of interest and principal. General obligation bonds can offer investors a relatively safe investment vehicle while providing states and local governments with funds for community improvement.