Vidyalelo
Management · Q264

International Finance and Treasury

Graduate and Post Graduate · Management · question 264

Q264

As compared to general obligation bonds, revenue bonds are considered as

A.
more inflated
B.
less inflated
C.
less risky
D.
more risky
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
As compared to general obligation bonds, revenue bonds are considered as more risky. Revenue bonds are generally of higher risk than general obligation bonds, and as a result, they typically offer higher yields.