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.
Inflation is a bond's worst enemy. When inflation expectations rise, interest rates rise, bond yields rise and bond prices fall. To that end, bond prices/yields, or the prices/yields of bonds with different maturities are an excellent predictor of future economic activity.