What is the difference between go and revenue bonds in terms of their impact on a municipality's ability to generate funds for infrastructure projects?

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2026-03-18 18:55

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Go bonds, or general obligation bonds, are backed by the full faith and credit of the municipality, meaning they are supported by the government's taxing power. Revenue bonds, on the other hand, are backed by the revenue generated by the specific project they are funding, such as tolls or fees. Go bonds may be easier to issue as they have a broader source of repayment, while revenue bonds are more limited in their repayment source.

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