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.
If their bond portfolio is an average of 10 years in maturity, then (investors) will see a 10 percent price drop with a 1 percent rise in rates.How bonds workThe price of bonds moves in the opposite direction of yield. When interest rates rise, prices of existing bonds go down.