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Investments glossary

Interest Rate Risk


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Quotes of the day:

All that is gold does not glitter not all those that wander are lost.

— J. R. R. Tolkien

Interest rate risk is the potential for investment losses that result from a change in interest rates. If interest rates rise, for instance, the value of a bond or other fixed-income investment will decline. The change in a bond’s price given a change in interest rates is known as its duration.


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