markyy12
Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Join our Q&A platform and get accurate answers to all your questions from professionals across multiple disciplines. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Why do some people invest in bonds with a low interest rates?
because

Sagot :

GinnyAnswer

Final answer:

Investors choose low-interest-rate bonds due to interest rate expectations, opportunity cost, and potential capital appreciation.


Explanation:

Investors may choose to invest in bonds with low interest rates due to various reasons:

  • Interest Rate Expectations: When investors anticipate interest rates to rise, they may opt for bonds with low interest rates since bond prices are inversely related to interest rates.
  • Opportunity Cost: Holding money instead of bonds when interest rates are low can be advantageous as the opportunity cost of holding money decreases.
  • Capital Appreciation: Investors may foresee capital appreciation in long-term bonds if interest rates are expected to fall, leading them to pay more upfront.

Learn more about Investing in bonds with low interest rates here:

https://brainly.com/question/38490782


barbaramarie510

Answer:

The returns are more consistent and reliable

Explanation:

Bonds typically have lower yields, but the returns are more consistent and reliable over a number of years than stocks, making them appealing to some investors. Stocks may provide greater returns than bonds but the risk of loss is just as high.

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.