tammycooks4845
Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Read the following and answer the question:

Which type of investments might suffer due to interest rate risks and why?

Type your response below:

Sagot :

GinnyAnswer

Final answer:

Bonds are investments that could be negatively affected by interest rate risks when rates rise.


Explanation:

Investments that might suffer due to interest rate risks are bonds. When interest rates rise, the market value of existing bonds decreases, causing bond prices to fall. This is because newly issued bonds offer higher yields due to the increased interest rates, making existing lower-yielding bonds less attractive to investors.


Learn more about Interest rate risks and investments here:

https://brainly.com/question/39046993


Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.