A general obligation (GO) bond is a type of municipal bond issued by state and local governments to finance public projects or fund government operations. These bonds are backed by the full faith and credit of the issuing government, which means they are secured by the government's ability to levy taxes and use its general revenue to repay the bondholders.

GO bonds are considered relatively low-risk investments because they rely on the taxing power of the government issuer rather than a specific revenue source. This backing provides investors with a higher level of security, resulting in lower interest rates compared to other types of bonds.

The funds generated from GO bonds are typically used for essential infrastructure projects such as building schools, roads, bridges, or funding public services like police and fire departments. The repayment of GO bonds is typically structured through regular interest payments and the eventual return of the principal investment upon maturity.

Investors interested in stable, long-term investments often consider GO bonds due to their reliable income stream and the assurance of repayment through government taxation powers.

A General Obligation (GO) bond is a type of municipal bond issued by government entities, such as cities, counties, or states, to finance public projects and infrastructure. Unlike revenue bonds, which are backed by specific revenue streams (such as tolls or utility fees), GO bonds are backed by the issuer's full faith, credit, and taxing power. This means that the government entity pledges its general funds, including the ability to raise taxes, to repay bondholders. GO bonds are considered a relatively low-risk investment because they rely on the taxing authority of the issuing government, which has the power to raise taxes to meet its debt obligations. Investors often view GO bonds as stable investments, and they play a crucial role in funding essential public projects like schools, roads, and public buildings.