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

Understand the Problem

The question is asking for the specific type of bond that is paid back using the income generated from the project it finances. This involves understanding different bond types and their repayment mechanisms.

More Information

Revenue bonds are used to finance projects that generate income and use this income to pay back investors.

Tips

Confusing revenue bonds with general obligation bonds is common. Remember, revenue bonds are repaid with project income, while general obligation bonds are repaid through taxes.

Sources

• Revenue Bonds - Investopedia - investopedia.com
• Bond (finance) - Wikipedia - en.wikipedia.org
• USOGE | Definitions - OGE.gov - oge.gov