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Interest rate risk is the risk that interest rates will decrease over the holding period of your investment. is the risk that interest rates will

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Interest rate risk is the risk that interest rates will decrease over the holding period of your investment. is the risk that interest rates will increase over the holding period of your investment. compensates for the chance of a borrower defaulting on the interest or principal payments on a loan. compensates for the lack of liquidity when trading the asset

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