Exercise
Match the type of bond with its characteristics.
Characteristics
- A. Bond having characteristics of both a revenue and general obligation bond, but the municipality is not obligated to financially back the bond
- B. Bond having characteristics of both a revenue and GO bond
- C. Revenue bond payable from the proceeds of a special tax that is unrelated to the project being financed
- D. Note issued by a municipality to finance an upcoming project that has been backed by a revenue bond
- E. Type of financing where the investor purchases a share of the lease revenue from a facility
- F. Bond backed by ad valorem taxes assessed only on those who directly benefit from the facilities
- G. Long-term bond with an interest rate that is reset at periodic intervals
- H. Bond sold at a discount to face value; the discount is given instead of interest payments; usually a zero coupon bond
- I. Bond that is not secured with public funds and is used when the municipality wishes to attract business and jobs by offering lower than market interest rates
- J. Note that issued by a municipality to finance a capital project before a bond has been issued
- K. Note issued by a municipality in anticipation of an incoming tax
- L. A taxable bond that was designed to spur capital investment and create jobs; offers a municipality a 35% subsidy on interest payments
- M. Notes issued by a municipality to finance proj