general obligation bond

简明释义

一般义务债款

英英释义

例句

1.Local governments often rely on general obligation bonds to finance public projects such as parks and roads.

地方政府通常依赖于一般义务债券来为公园和道路等公共项目融资。

2.Investors often view general obligation bonds as a safe investment due to their backing by the issuing municipality.

由于一般义务债券由发行市政当局担保，投资者通常将其视为安全的投资。

3.The city issued a new general obligation bond to fund the construction of a new school.

该市发行了一种新的一般义务债券来资助新学校的建设。

4.A general obligation bond is typically repaid through taxes collected by the government.

通常，通过政府征收的税款偿还一般义务债券。

5.The state plans to refinance its existing general obligation bonds to take advantage of lower interest rates.

该州计划再融资现有的一般义务债券以利用更低的利率。

作文

A general obligation bond is a type of municipal bond that is issued by states, cities, or other governmental entities to finance public projects. These bonds are backed by the full faith and credit of the issuing authority, which means that they are supported by the issuer's ability to levy taxes and generate revenue. Investors who purchase general obligation bonds can expect a relatively low-risk investment because they have a claim on the issuer's taxing power. This characteristic makes them particularly appealing to conservative investors seeking stable returns.The primary purpose of issuing general obligation bonds is to raise funds for essential public services such as schools, parks, roads, and other infrastructure projects. By issuing these bonds, local governments can spread the cost of large projects over time, allowing them to invest in necessary improvements without placing an immediate financial burden on taxpayers. For instance, if a city decides to build a new high school, it might issue general obligation bonds to cover the construction costs. The city then commits to repaying the bondholders through future tax revenues.One of the key benefits of general obligation bonds is their tax-exempt status. In many cases, the interest earned on these bonds is exempt from federal income tax, and sometimes from state and local taxes as well. This tax advantage makes general obligation bonds an attractive option for investors looking to minimize their tax liabilities while still earning a return on their investment.However, like any investment, general obligation bonds come with risks. One potential risk is that the issuing government may face financial difficulties, leading to a decrease in its ability to meet its debt obligations. If a municipality experiences budget shortfalls or economic downturns, it may struggle to generate sufficient tax revenue to pay back its bondholders. In extreme cases, this can lead to default, where the issuer fails to make interest or principal payments.Another consideration for investors is the interest rate environment. When interest rates rise, the value of existing general obligation bonds tends to fall. This is because newer bonds may be issued at higher rates, making older bonds with lower rates less attractive. Investors must be aware of market conditions and interest rate trends when investing in these types of bonds.In summary, general obligation bonds are an essential tool for financing public projects and improving community infrastructure. They offer a relatively safe investment option for those looking to support their local governments while earning a return. However, investors should conduct thorough research and consider the associated risks before committing their funds. By understanding the mechanics of general obligation bonds and the factors that influence their performance, investors can make informed decisions that align with their financial goals and risk tolerance.

一般义务债券是一种由州、市或其他政府实体发行的市政债券，用于融资公共项目。这些债券由发行机构的全信贷和信用支持，这意味着它们由发行者征税和产生收入的能力支持。购买一般义务债券的投资者可以预期相对低风险的投资，因为他们对发行者的征税权有索偿权。这一特性使得它们对于寻求稳定回报的保守投资者特别具有吸引力。发行一般义务债券的主要目的是为学校、公园、道路和其他基础设施项目等基本公共服务筹集资金。通过发行这些债券，地方政府可以将大型项目的成本分摊到时间上，使其能够在不对纳税人施加即时财务负担的情况下进行必要的改善。例如，如果一个城市决定建造一所新高中，它可能会发行一般义务债券来支付建设费用。然后，城市承诺通过未来的税收收入来偿还债券持有人。一般义务债券的一个关键好处是其免税地位。在许多情况下，所赚取的利息免征联邦所得税，有时也免征州和地方税。这一税收优势使得一般义务债券成为投资者希望最小化税收负担的吸引选项，同时仍能从投资中获得回报。然而，像任何投资一样，一般义务债券也存在风险。一个潜在的风险是发行政府可能面临财务困难，导致其满足债务义务的能力下降。如果一个市政当局经历预算短缺或经济衰退，它可能难以产生足够的税收收入来偿还其债券持有人。在极端情况下，这可能导致违约，即发行者未能支付利息或本金。投资者需要考虑的另一个因素是利率环境。当利率上升时，现有的一般义务债券的价值往往会下降。这是因为新债券可能以更高的利率发行，使得利率较低的旧债券变得不那么有吸引力。投资者在投资这些类型的债券时必须意识到市场条件和利率趋势。总之，一般义务债券是融资公共项目和改善社区基础设施的重要工具。它们为那些希望支持地方政府并获得回报的人提供了相对安全的投资选择。然而，投资者在投入资金之前应进行充分研究，并考虑相关风险。通过了解一般义务债券的运作机制以及影响其表现的因素，投资者可以做出符合其财务目标和风险承受能力的明智决策。