The bonds that are backed by cash flow from project and are sold to finance particular project are classified as ____________?
Correct answer: B. revenue bonds
- A. finance bonds
- B. revenue bonds
- C. financing bonds
- D. project bonds
Explanation
Revenue bonds are repaid from the cash flows or revenues generated by a specific project, such as a toll road or power facility. Their repayment depends on that project rather than general government revenue.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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