Grand Canyon Education, Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Market risk . As of June 30, 2024, we have no derivative financial instruments or derivative commodity instruments. We invest cash in excess of current operating requirements in money market instruments and commercial paper at multiple financial institutions. Interest rate risk . We manage interest rate risk by investing excess funds in cash equivalents, BBB or higher rated corporate bonds, commercial paper, agency bonds, treasury bills, municipal securities, asset backed securities, municipal bonds, and collateralized mortgage obligations bearing variable interest rates, which are tied to various market indices or individual bond coupon rates. Our future investment income may fall short of expectations due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities before their maturity date that have declined in market value due to changes in interest rates. At June 30, 2024, a 10% increase or decrease in interest rates would not have a material impact on our future earnings, fair values, or cash flows.