In the second scenario, a sudden jump in interest rates, short-term and medium-term bond funds take an immediate hit in their value and then take about two years or more to climb back to their starting value.

WSJ: A 401(k) Defense Against Rising Rates

In the first scenario of a steady, extended climb in rates, the firm found that investors would likely see the value of investments in mutual funds that hold short-term or medium-term bonds decline over a three-year period, while holders of stable-value accounts would see their balances continue to grow steadily.

WSJ: A 401(k) Defense Against Rising Rates

"In the medium term, we need to look at ensuring the north has adequate funds for development so the communities there can build real livelihoods, " the official added.

BBC: Mali conflict: Chad army 'enters Kidal'