Municipal Bonds Total Revenue

For instance a toll road or utility can be financed.

Municipal bonds total revenue. Generally speaking there are two categories of municipal bonds. General obligation and revenue bonds differ in the sources of cash flows that will be responsible for repaying the investors who provide the capital to issue the bonds. Revenue bonds are a class of municipal bond issued to fund public projects which then repay investors from the income created by that project. Revenue bonds are primarily utilized by government entities to subsidize infrastructure projects.

A revenue bond is a type of municipal bond in which the repayment of the obligation is primarily guaranteed by the operating revenues of an entity. A revenue bond secures principal and interest payments through the issuer or sales fuel hotel occupancy or other taxes. Municipal bonds generally can be classified into two camps general obligation bonds and revenue bonds.