Interest Rate Risk
Subject: Finance | Topics:

Interest rate Risk is the chance that an investment’s price will change because of change in the absolute higher level of interest rates, in the spread between a couple rates, in the shape of the deliver curve or in a other interest charge relationship. Such changes commonly affect securities inversely and is reduced by diversifying buying fixed income securities using different duration as well as hedging. Interest rate risk is the risk that occurs for bond masters from fluctuating interest rates.

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