What characterizes double-barreled bonds?

Double-barreled bonds are uniquely characterized by being backed by two sources of revenue, which is reflected in the correct choice. This distinctive feature enhances their security and reliability for investors. Typically, these bonds utilize one revenue source that is consistent and reliable, such as property taxes or utility revenues, and a second source that may include general obligation pledges or other revenue-generating mechanisms. This dual backing provides a fall-back option should one source fall short, thus lowering the risk for bondholders.

In contrast, the other options do not accurately represent the traits of double-barreled bonds. For instance, bonds issued exclusively for educational purposes would not encompass the broader definition of double-barreled bonds, as they can be issued for various projects beyond education. Similarly, stating that such bonds are backed solely by corporate assets does not capture their primary characteristic since double-barreled bonds are typically associated with municipal financing rather than corporate financing. Lastly, describing repayment as being at the discretion of the issuer does not apply, as double-barreled bonds have well-defined repayment sources that fund them, ensuring obligations are met based on the identified revenues.