Copyright Law, Basics, and Fair Use. A quiz on various things about copyright law, the basics of it and its protective rights, and fair use basics. This is based on Dr. Shaw's PowerPoints and the Purdue Copyright Web Site. STUDY.
Supply and Demand. When the economy sours, investors tend to move out of stocks and into bonds. In most free market situations, when demand exceeds supply, prices tends to rise. But when it comes to bonds, increased demand tends to cause the initial interest rate to decline.
To attract demand, the price of the pre-existing zero-coupon bond would have to decrease enough to match the same return yielded by prevailing interest rates. In this instance, the bond's price would drop from $950 (which gives a 5.26% yield) to $909.09 (which gives a 10% yield).