dominicjz02 dominicjz02
  • 21-03-2021
  • Business
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How does risk influence the rate of interest?

Respuesta :

rylee1015
rylee1015 rylee1015
  • 21-03-2021

Answer:

Interest rate risk directly affects the values of fixed income securities. Since interest rates and bond prices are inversely related, the risk associated with a rise in interest rates causes bond prices to fall and vice versa. Interest rate risk affects the prices of bonds, and all bondholders face this type of risk.

Explanation:

Hope this helped Mark BRAINLEST!!

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