What are municipal bonds? Describe two different types of municipal bonds.

There are two common types: General Obligation Bonds and Revenue Bonds.

GOB: Issued by cities, states or countries and are not primarily secured by assets. The issuer can tax all who apply (citizens, residents, etc) for the bondholders.

RB: Are NOT backed by the government and come from a specific source such as the toll paid for driving on a toll road.