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.
First, the prices of bonds and interest rates move in opposite directions. If interest rates decline, the price of a bond goes up, and if interest rates rise, the price of a bond declines. Second, bonds with longer maturities incur significantly higher interest rate risk than those with shorter maturities.
Conversely, if the risk is acceptable, corporate bonds with high credit spreads offer the prospect of a narrowing spread, which in turn will create price appreciation. However, interest rates and credit spreads can move independently.nvestors of such bonds must assume not only interest rate risk but also credit risk, the chance that the corporate issuer will default on its debt obligations.