Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Get detailed and precise answers to your questions from a dedicated community of experts on our Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
Investors who accept that interest rates will rise most probably prefer to invest in inverse floaters.
Which types of investments are most sensitive to interest rate risks?
Since interest rates and bond costs are inversely correlated, the risk associated with a peak in interest rates causes bond costs to fall, and vice versa. Bond investors, especially those who fund in long-term fixed-rate bonds, are more instantly exposed to interest rate risk.
Bonds have an inverse connection to interest rates. When the cost of borrowing funds rises (when interest rates rise), bond costs usually fall, and vice-versa.
To learn more about interest rates visit the link:
https://brainly.com/question/13324776
#SPJ4
We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.
