As it sounds, a revenue bond is backed by the revenue generated from a specific project. These projects can vary, but always are some type of structure such as a toll-road, or any other revenue generating building. The funds generated after the project is complete helps pay back the principle. Governments and private companies can issue these types of bonds.

The maturity of these bonds is long term, and usually fall into the maturity range of 20-30 years. These bonds have a higher risk of default.