General Obligation Bonds
General Obligation Bonds are a type of municipal bond that is backed by the full faith and credit of the issuing government entity, typically a state or local government. These bonds are used to finance various public projects, such as schools, roads, and infrastructure improvements. They are considered low-risk investments because they are backed by the government's ability to levy taxes in order to make interest payments and repay the principal amount borrowed. General Obligation Bonds are typically repaid using a combination of tax revenues and other sources of government income.