* Site-Outage Notice: Our engineering elves will be tweaking the Shmoop site from Monday, December 22 10:00 PM PST to Tuesday, December 23 5:00 AM PST. The site will be unavailable during this time.
Dismiss
© 2014 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

General Obligation Bond

Definition:

A municipal bond where the interest payments and principal repayment are backed by the full faith and credit of the issuing municipality. "Full faith and credit" refers to the municipality's ability to assess and collect taxes that service the debt.

Advertisement