View source for Interest rate guarantee

(IRG). 

This is an option on a specified short-term interest rate for a specified notional loan or deposit.
 
A borrower normally wants a guarantee that their hedged rate payable will be 'no higher than' a specified worst case rate.

A lender or investor normally wants a guarantee that their hedged rate receivable will be 'no less than' a specified worst case rate.


== See also ==
* [[Hedging]]
* [[Interest rate]]
* [[Interest rate option]]
* [[Option]]