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 the period between the time that businesses approve bonds and when those bonds go to market, interest rates often change. Should interest rates increase above the stated rate on the bond, the business typically sell bonds below face value so purchasers get an equivalent return on their money.