Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

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 :

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


We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.