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Suppose that the City of Dallas builds a parking lot in downtown by issuing a bond for $5 million. The bond pays a 5 percent

Suppose that the City of Dallas builds a parking lot in downtown by issuing a bond for $5 million. The bond pays a 5 percent coupon, tax-free.

The bond's interest payments are paid from the revenue generated by parking fees.

In your opinion, what is the risk of default on this bond? Based on the answer what "grade" should this bond receive by the rating agency for bond quality? Is this a safe investment for the pension fund of the union of hospital nurses?

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