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An Investor with a Fixed- Rate Investment Who Fears That

question 19

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An investor with a fixed- rate investment who fears that interest rates might rise can use:


Definitions:

Annuity

An income-generating financial offering that provides fixed periodic payments, largely intended for the retired population.

Rate Of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Compounded Quarterly

A method where interest is calculated and added to the principal amount four times a year.

Economic Advantage

A benefit that gives an individual, business, or country a superior position in economic activities.

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