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You May Have Noticed That a Plant Placed on a Windowsill

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You may have noticed that a plant placed on a windowsill will eventually bend toward a light source. This is likely due to the fact that, in response to a light source:


Definitions:

Interest Rate Risk

The potential for investment losses due to fluctuations in interest rates, affecting the value of interest-bearing assets.

Default Risk

The possibility that a borrower will fail to meet the obligations of a debt agreement.

Adjustable Maturity Dates

Adjustable maturity dates refer to the flexibility allowed in the due dates of financial instruments, allowing for changes in the repayment schedule.

Floating-Rate Bonds

Bonds with variable interest rates that adjust periodically based on a benchmark interest rate or index.

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