One way to raise equity for a transportation project is to issue bonds. A bond is a written promise to repay borrowed money on a definite schedule, usually at a fixed rate over the life of the bond. Transportation bonds are traditionally municipal bonds, which are issued by state and local government entities to finance their various projects and expenses.
Recent years have spurred some noteworthy bonding innovations. State and local governments as well as transportation agencies and authorities have issued bonds backed by money sources not previously used to secure debt.
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