revenue bond investment & finance definition
A
bond that is paid back by revenues from the project the proceeds from the bond
sale went to fund. Often, revenue bonds are used in conjunction with a public
utility, a toll bridge, or road.
See revenue bond in Wall Street Words
A municipal debt on which the payment of interest and principal depends on revenues from the particular asset that the bond issue is used to finance. Examples of such projects are toll roads and bridges, housing developments, and airport expansions. Revenue bonds are generally considered of lower quality than general obligation bonds, but there is a great amount of variance in risk depending on the particular assets financed. Compare
authority bond.
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