By TheStreet Staff What Is Interest Rate Risk? What Is an Example of Interest Rate Risk?Duringbear markets, investors flock to fixed-income investments, like bonds and Treasury securities, because they offer relative stability in times of market volatility. In addition, many provide regular interest payments, known as the yield, or coupon. A lot of investors already know that bonds and interest rates have an inverse relationship. You may have even heard the phrase, “When interest rates rise, bond prices drop.” Bonds are sensitive to interest rate risk, which means that when interest rates rise…