interest rate risk

interest rate risk definition - finance
The risk of losing money because interest rates move up or down. For example, the value of bonds in a portfolio can be reduced if interest rates move higher and the value of the interest rate paid on the bond remains set.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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