A municipal bond rating service would consider all of the following when evaluating a revenue bond EXCEPT:
A) operating revenues.
B) the public's attitude toward debt.
C) the debt service coverage ratio.
D) feasibility studies.
Answer: Debt service coverage ratio, feasibility studies, and projected operating revenues are important to the analysis of a municipal revenue bond. The public's attitude toward debt is relevant in evaluating GO bonds, which are backed by the taxing authority of the issuer.