Explain why a risk averse investor might prefer investing in a “general obligation’ bond, rather than a “revenue bond”

DISCUSSION:
1. Distinguish between the three types of municipal bonds presented in the introduction, and decide when investors might find these financial instruments to be a useful “tool” in their portfolios (p. 35)

2. Explain why a risk averse investor might prefer investing in a “general obligation’ bond, rather than a “revenue bond” (p. 36)

3. Elaborate upon the selection process that should be considered when contemplating the direct purchase of municipal bonds (pp. 39-40)