What bond is backed by the full fAith and credit of the issuing governmental unit?

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1157953

2026-03-21 13:55

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A bond backed by the full faith and credit of the issuing governmental unit is known as a general obligation bond. These bonds are secured by the issuer's ability to levy taxes and use other revenue sources to meet repayment obligations. Because of this backing, general obligation bonds are typically considered lower risk compared to revenue bonds, which rely on specific revenue sources for repayment.

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