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How does a sediment become transformed into a sedimentary rock?
Floating Rate
An interest rate that fluctuates over time with the market or an index.
Fixed Rate
An interest rate that remains unchanged throughout the entire term of the loan, mortgage, or bond.
Derivative Security
A financial security whose value is dependent upon or derived from one or more underlying assets.
Hedging
Reducing a firm’s exposure to price or rate fluctuations. Also immunization.
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