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Interest rate derivative instrument
A derivative whose value is based on the movement of market interest rates.
(1) These derivatives are widely used to hedge against interest rate risk.
(2) The most common interest rate derivatives are the interest rate swap, the forward rate agreement, the cap, the floor, the interest rate futures and the interest rate option.
Translations
Synonyms and variations
- Interest rate derivative
- Interest rate derivative contract
- Interest rate derivative product