™For a $1,000 bond, even a small change connected to federal funds rate can affect income, market value or sensitivity to rates.
Bonds & Rates
Federal funds rate
The target range set by the Federal Reserve for overnight lending between depository institutions.
Plain-English context
Why it matters
Fixed-income terms connect promised cash flows with interest-rate, credit and purchasing-power risk.
Assuming Federal funds rate has one universal interpretation without checking the source, rules, timeframe or methodology.
Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.