What is a bond?
A bond is a fixed interest financial asset issued by governments, companies, banks, public utilities and other large entities. Bonds pay the bearer a fixed amount a specified end date. A discount bond pays the bearer only at the ending date, while a coupon bond pays the bearer a fixed amount over a specified interval as well as paying a fixed amount at the end date.
What are Double-barreled bonds?
A revenue bond issued by a municipal or state authority that is guaranteed by the overlying municipal or state authority.
For example, if a transport authority for a state issues a bond, in the event of a revenues from the transport authority are not enough to pay back the bond, the state government would use its tax revenues to make the interest and principal payments.
So, for these bonds, the cash flows are pledged by two distinct entities. The First entity is under obligation to make interest payments, whereas the other owes the principal payments.
These are municipal general obligation (GO) bonds as in contrast to revenue bonds because they are backed by the issuer and its taxing authority.