From the perspective of the lending financial institution, interest rate risk is lower

Question

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The lending financial institution faces lower interest rate risk on a 15-year fixed-rate mortgage than on a 30-year fixed-rate mortgage. This is because the borrower will pay off the loan faster with a 15-year mortgage, which means that the risk of interest rates changing over a long period is lower. In contrast, the institution is exposed to interest rate risk for a longer period with a 30-year fixed-rate mortgage.

From the Perspective of the Lending Financial Institution, Interest Rate