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Prime Rate Fund
(redirected from Price-Rate Funds)

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Prime rate fund
A mutual fund that buys portions of corporate loans from banks and pays the interest to shareholders.
Prime Rate Fund
A mutual fund that invests predominantly or exclusively in corporate loans. That is, the prime rate fund buys corporate loans (which are distinct from bonds) from the banks making them and passes the interest to shareholders. The risk of a prime rate fund depends on the weighted average risk of the loans represented in it.
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