Which of the following types of debt depend on the revenue stream generated by the issuer to provide for repayment?

Revenue bonds are a type of debt that are specifically linked to the revenue generated by a particular project or service provided by the issuer. Unlike general obligation bonds, which are backed by the full faith and credit of the issuing authority and can rely on tax revenues for repayment, revenue bonds are paid from the income generated by the specific asset or project financed by the bonds.

For example, a toll road authority may issue revenue bonds that are repaid using the tolls collected from users of the road. This creates a direct relationship between the revenue stream and the ability to service the debt. The investors in revenue bonds thus assess the projected revenues from the project as part of their investment decision, differentiating these bonds from other forms of debt that may not have such a direct link to revenue generation.

In contrast, general obligation bonds are supported by the government’s ability to tax and do not depend on a specific revenue-generating project. Tax-exempt and taxable debt bonds refer broadly to the tax status of the bond but do not specify a revenue dependency for repayment, which is the determining factor for revenue bonds.