Question: What is the difference between interest rate risk and default risk? How do combinations of terms in ARMs affect the allocation of risk between borrowers

What is the difference between interest rate risk and default risk? How do combinations of terms in ARMs affect the allocation of risk between borrowers and lenders?

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Interest rate risk is the risk that the interest rate will change at some time during the ... View full answer

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What is the difference between interest rate risk and default risk? How do combinations of terms of ARMs affect the allocation of these risks between lenders and borrowers?

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