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.
In some cases, a bond's price is affected by. something that is unique to its issuer--for example, a. change in the bond's rating. However, other factors. have an impact on all bonds. The twin factors that. affect a bond's price are inflation and changing. interest rates. A rise in either interest rates or the. inflation rate will tend to cause bond prices to drop. Inflation and interest rates behave similarly to bond. yields, moving in the opposite direction from bond. prices.