## Interest Rate Risk Solution

STEP 0: Pre-Calculation Summary
Formula Used
Interest Rate Risk = (Original Price-New Price)/New Price
IRrisk = (OP-NP)/NP
This formula uses 3 Variables
Variables Used
Interest Rate Risk - Interest Rate Risk is a valuable financial measurement, particularly with fixed income investments, helping investors understand the fluctuations in fixed income securities.
Original Price - Original price is the total cost associated with the purchase of the product.
New Price - The New Price refers to the anticipated or calculated price of a fixed-income security (such as a bond) after a change in interest rates.
STEP 1: Convert Input(s) to Base Unit
Original Price: 450 --> No Conversion Required
New Price: 113 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
IRrisk = (OP-NP)/NP --> (450-113)/113
Evaluating ... ...
IRrisk = 2.98230088495575
STEP 3: Convert Result to Output's Unit
2.98230088495575 --> No Conversion Required
2.98230088495575 2.982301 <-- Interest Rate Risk
(Calculation completed in 00.004 seconds)
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## Credits

Created by Kashish Arora
Satyawati College (DU), New Delhi
Kashish Arora has created this Calculator and 50+ more calculators!
Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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## Interest Rate Risk Formula

Interest Rate Risk = (Original Price-New Price)/New Price
IRrisk = (OP-NP)/NP

## What is Interest Rate Risk?

Interest rate risk is a valuable financial measurement, particularly with fixed income investments, helping investors understand the fluctuations in fixed income securities. The risk pertains to the exposure an investor has if the bond needs to be liquidated prior to maturity. Bonds will go up in value when the interest rates go down and fall in value when rates go up. Calculating the risk helps investors properly allocate investment dollars that meet investment objectives.

## How to Calculate Interest Rate Risk?

Interest Rate Risk calculator uses Interest Rate Risk = (Original Price-New Price)/New Price to calculate the Interest Rate Risk, Interest Rate Risk is a valuable financial measurement, particularly with fixed-income investments, helping investors understand the fluctuations in fixed income securities. Interest Rate Risk is denoted by IRrisk symbol.

How to calculate Interest Rate Risk using this online calculator? To use this online calculator for Interest Rate Risk, enter Original Price (OP) & New Price (NP) and hit the calculate button. Here is how the Interest Rate Risk calculation can be explained with given input values -> 2.982301 = (450-113)/113.

### FAQ

What is Interest Rate Risk?
Interest Rate Risk is a valuable financial measurement, particularly with fixed-income investments, helping investors understand the fluctuations in fixed income securities and is represented as IRrisk = (OP-NP)/NP or Interest Rate Risk = (Original Price-New Price)/New Price. Original price is the total cost associated with the purchase of the product & The New Price refers to the anticipated or calculated price of a fixed-income security (such as a bond) after a change in interest rates.
How to calculate Interest Rate Risk?
Interest Rate Risk is a valuable financial measurement, particularly with fixed-income investments, helping investors understand the fluctuations in fixed income securities is calculated using Interest Rate Risk = (Original Price-New Price)/New Price. To calculate Interest Rate Risk, you need Original Price (OP) & New Price (NP). With our tool, you need to enter the respective value for Original Price & New Price and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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