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Bonds 209: Revenue Bonds

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1.
A city wishing to build a toll road would finance it with a revenue bond rather than a general obligation bond.
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True. Revenue bonds fund facilities that produce revenues, such as tolls.
2.
Factories are likely to be financed by which of the following type of revenue bond?
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Industrial. Industrial revenue bonds fund factories.
3.
Revenue bonds pay more interest than general obligation bonds because their revenue-producing abilities cannot be predicted with certainty.
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True. To compensate, revenue bonds offer higher interest.
4.
Bond analysts study the _______of a project so that the project's ability to repay bondholders can be evaluated.
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Cash flow. Studying cash flow helps a bond analyst determine revenues.
5.
Which of the following does NOT secure a revenue municipal bond?
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Taxes. Taxes are not collected to pay revenue bonds.