Definition of General Obligation Bond

General Obligation Bond is a municipal bond that is backed by the taxing power of the state or municipality.

Applying "General Obligation Bond" to Securities Exams:

General Obligation Bond or GO is a bond that is back by the tax revenue of the state or municipality. At the state level a general obligation bond is backed by revenue generated by income taxes and sales taxes. At the local level municipal GO bonds are backed by revenue generated by property taxes.

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