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Interest Rate Anchor |
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Interest Rate Anchor An interest rate on a bond lower than its risk ordinarily would allow. An interest rate anchor may occur if there are no safer bonds available. That is, even though the risk of a bond may justify a higher interest rate in a vacuum, the bond is still safer than similar options, which keeps the rate low. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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