General obligation bonds (GO bonds) are a type of municipal bond backed by the full faith and credit of the issuing government. This means that the bondholders are repaid from the government’s general revenues, not from a specific project or revenue stream. GO bonds are considered to be a relatively safe investment, as they are backed by the taxing power of the issuing government.
GO bonds are often used to finance essential government services, such as schools, roads, and hospitals. They can also be used to refinance existing debt or to fund capital projects. GO bonds are typically issued in denominations of $5,000 or more, and they have maturities ranging from one to 30 years.
