The state of Texas is seeking to raise $500 million through the sale of general obligation...

The state of Texas is seeking to raise $500 million through the sale of general obligation bonds. Which of the following will support the repayment of the bond issue?

Select one:

a. User Fees

b. Property Taxes

c. Sales taxes

d. None of the above

The state of Massachusetts is seeking to raise $300 million through the sale of revenue bonds to repair the roadways. Which of the following is correct?

Select one:

a. The offering will be advertised in the daily bond buyer.

b. None of choices.

c. These bonds will be issued through a negotiation.

d. The bonds will be subject to a statutory debt limit.

The city of Miami is seeking to raise $10 million through the sale of general obligation bonds to repair the high school's football field. The bonds are going to be issued ex-legal. Which of the following is correct?

Select one:

a. The bonds' legal claim to the tax revenue is in doubt.

b. The bonds received no legal opinion.

c. The bonds received an unqualified legal opinion.

d. None of the above.

Solutions

Expert Solution

1) The state of Texas is seeking to raise $500 million through the sale of general obligation bonds. Which of the following will support the repayment of the bond issue?

The Correct Option is b) Propery Taxes. A limited or Unlimited General Obligation Bonds allows State of Texas to increase the property taxes when it is necessary to support the repayment of the bond issue.

2) The state of Massachusetts is seeking to raise $300 million through the sale of revenue bonds to repair the roadways. Which of the following is correct?

The Correct Option is a) The offering will be advertised in the daily bond buyer. The Bond buyer is a trade publication for members of the municipal bond industry which began as a daily newspaper 100 years ago.

3) The city of Miami is seeking to raise $10 million through the sale of general obligation bonds to repair the high school's football field. The bonds are going to be issued ex-legal. Which of the following is correct?

The Correct Option is b) The bonds received no legal opinion. Ex-legal is a muncipal bond that is delivered without a legal opinion from a bond law firm.

Rahul Sunny answered 1 year ago

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