tammycooks4845 tammycooks4845

01-07-2024
Business

Answered

Read the following and answer the question:

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

Type your response below:

Answer :

GinnyAnswer GinnyAnswer

01-07-2024

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:

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