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.
Now suppose one year later interest rates rise to 5% and you decide to sell your bond because you need that $1,000. When you enter an order to sell, the order goes to the market, and potential buyers now compare your bond to other bonds and offer you a price. Of course this all happens electronically in an instant.