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Since the issuance of the first municipal bond in 1812, the municipal bond market has been the primary source of capital for U.S. infrastructure. Over the years, new "versions" of bonds have been developed to meet the growing needs of state and local governments, including special purpose governments or public authorities. Types of bonds that are used to finance infrastructure and government activities include a) direct payment bonds, b) private activity bonds, and c) social impact bonds. Discuss the underlying differences between these types of bonds including the purpose, any unique aspects, and overall structure of each.

Reference no: EM132657450

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