The difference between a general obligation and a revenue bond is:

a.

The general obligation bond is backed by full faith, credit, and taxing power of the governmental unit

b.

That for a revenue bond, the repayment of the issue is fully dependent on the revenue-generating capability of a specific project or venture

c.

General obligation bonds are usually of high quality because of the taxing power behind most of them

d.

All of the above

If an investor is in the 33 percent marginal tax bracket and can purchase a municipal bond paying 7.5 percent, what would the equivalent before-tax return from a corporate bond have to be to equate the two returns on a before tax basis.