What Happens If Revenue Bonds Default?

1 FINANCE MCQS

If revenue bonds default, the bondholders will ____________?

Not be paid
Be paid
Be sold
Not be sold

Correct Answer: A. Not be paid

Detailed Explanation

Revenue bonds are repaid using income from the specific project they finance. If the project fails and revenue is insufficient, bondholders will not be paid, as these bonds are not backed by the full faith and credit of the issuer.

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If revenue bonds default, the bondholders will ____________?

If revenue bonds default, the bondholders will ____________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…