Answer:
C. Pre-refunded general obligation bonds
Explanation:
For investor who has low-risk tolerance, Pre-refunded general obligation bonds will be the best options.
Issuer of Pre-funded Obligations already held the money that he will use for payment and put that money in an escrow. The purchaser of the obligations can retrieve the money from the escrow as soon as the obligation meets its maturity date.
This means that this type of bonds provide almost no risk for the investors, but the return typically smaller compared to other form of investment.
