is there a difference? price risk is the risk that a security’s value drops interest rate risk = risk that the value of a bond drops when the interest rates rise is that the difference (securities vs. bonds only)
I believe they’re the same, but the risks involved in bonds are: 1. Interest rate risk (or price risk) 2. Re-investment risk 3. Credit risk Can’t think of any others right now, but I think that’s it.
Isn’t price risk the uncertainty of the price in the future when you sell it (unless of course you hold it to maturity). Interest rate risk is just the fact the the bond price increases when rates go down and price decreases when rates go up.
Price risk is a component of interest rate risk. Its uncertainty of the bond market price, due to interest rate risk.
Yes, price risk and interest rate risk are the same thing. I think you are looking at the Pure Expectations Theory.
I think price risk may be a broader term which also includes downgrade risk.