Immunization, in the context of finance, is a strategic approach designed to manage and mitigate the risks associated with interest rate fluctuations.

Interest rates represent the cost of borrowing money or the return on investment for lending funds. These rates are typically expressed as a percentage of the principal amount over a specified time period.

The term discount rates is multifaceted in the world of finance, with multiple definitions depending on its context. Generally, it refers to two key concepts.

Understanding Annual Percentage Rate (APR) Your Guide to Interest Rates