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 projects that have been backed by both revenue and GO Bonds
N. Bonds whose inte