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Fixed Income Instruments

Credit Risk

This is an essential concept in the world of finance and plays a crucial role in determining the interest rate on a loan. It is important for financial institutions to carefully assess the credit risk of potential borrowers before lending them money.

In the world of finance, there is a concept that must be carefully considered when lending money: credit risk. This refers to the potential for loss if a borrower is unable to repay their loan. This variable is a crucial factor in determining the interest rate of a loan. Financial institutions must thoroughly evaluate the credit risk of potential borrowers to ensure the safety of their investments.

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