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New no-load bond fund from T. Rowe Price

T. Rowe Price, a Baltimore-based investment management company, introduced the Ultra Short-Term Bond Fund, (TRBUX), a no-load mutual fund that offers a conservative investment alternative for investors who want higher yields than a money market fund and less volatility than short-term bond funds.

The new fund takes on slightly more credit and interest rate risk than money market funds with greater return potential.

However, the company said that unlike money market funds but similar to other bond funds, its net asset value can increase or decrease as interest rates change, with the potential for principal gains or losses.