A Bond That Is Repaid from the Income Generated by the Project

question 124

Multiple Choice

A bond that is repaid from the income generated by the project it is designed to finance is called a(n)

• A) Treasury bill.
• B) Savings bond.
• C) Revenue bond.
• D) General obligation bond.
• E) Agency bond.

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Definitions:

Yield

The income return on an investment, such as the interest or dividends received from holding a particular security.

Annually Compounded

The process where interest is added to the principal sum of a loan or deposit once a year.

Rate of Return

The increase or decrease in the value of an investment during a set timeframe, shown as a percentage of the investment's starting price.

Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.