Which type of bond is designed to be repaid from the project's income?

• A. General Obligation Bond
• B. Municipal Bond
• C. Revenue Bond
• D. Corporate Bond

Answer: (C)

Repayment source drives the type of bond. A revenue bond is issued to finance a specific project and is repaid from the income the project itself generates—such as tolls, user fees, or utility revenues—rather than from the issuer’s taxes or general funds. This means debt service depends on the project’s financial performance, which is why it’s designed specifically to be paid from project income. For contrast, general obligation bonds are backed by the issuer’s taxing power, municipal bonds cover a broad category with various security structures, and corporate bonds are repaid from the issuing company's earnings. The key idea is: debt service tied to a project's revenues points to a revenue bond.