Price risk
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Price risk (alternatively known as interest rate risk) is the risk of a decline in a bond's price due to an increase in interest rates.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Price risk (interest rate risk). The risk of a decline in a bond's price due to an increase in interest rates.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.