Answer:
the level of risk in an investment
Explanation:
Interest rates show the percentage yield an investor will be gaining from undertaking a particular investment. All investments reward investors with regular returns that are expressed a percentage of the principal amount. The higher the returns, the more attractive the investment. Interest rates are the rewards or returns from an investment.
A high-interest rate is also indicative of the risk associated with the investment. Generally, high-risk investments will offer a higher interest rate. Government bonds and treasury bills are the safest investment but offer lower interest rates. Corporate bonds are riskier but have high-interest rates.
