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Managing Interest Rate Risk

Wednesday, September 11, 2013 - 7:11 AM
Interest rate risk exists in an interest-bearing asset, such as a loan or a bond, due to the possibility of a change in the asset’s value resulting from the variability of interest rates. Interest rate risk management has become very important, and assorted instruments have been developed to deal with interest rate risk.

There is, however, no free lunch. With any of these alternatives, one gives up something.

http://www.mybanktracker.com/news...-rate-risk
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